Rs. TOTAL CREDITORS ACCOUNT Rs. To Cash 60,400 By Opening balance 12,000 To Returns outwards 2,400 By Purchases 80,600 balancing figure) To Bills payable (taken from 21,800 Bill payable a/c To closing balance 8,000 92.600 92,600 Total Purchases Cash Purchases + Credit Purchases r35 51,600 + 80,600 Rs. 1,32,200 Direct Expenses: Information relating to nominal accounts can be ascertained from the cash book. These expenses may require adjustment in the light of outstanding and prepaid expenses. Sales: Sales for the purpose of trading account are ascertained by adding cash sales and credit sales. Credit sales should be found out by preparing a Total Debtors Account while cash sales should be found out from the Cash Book Illustration 8: From the information given below you are required to calculate the total sales. Rs. Total Debtors Account balance on 1.1.2005 39,400 Bills Receivables Account balance on 1.1.2005 12,000 Cash sales Cash received from debtors 40,000 Bills receivable encashed during the year 25,000 Sales Returns 3,000 Bill Receivable dishonoured 2,000 17,000 Bad Debts written off Discount Allowed Bills Receivable balance as on 31.12.2005 Total Debtors Account balance on 31.12.2005 1,000 3,000 18,000 50,000