Prepare the suitable accounts and find out the missing figure if any.
| Particulars | Amount (₹) |
|---|---|
| Opening balance of debtors | 14,00,000 |
| Opening balance of bills receivable | 7,00,000 |
| Closing balance of bills receivable | 3,50,000 |
| Cheque dishonoured | 27,000 |
| Cash received from debtors | 10,75,000 |
| Cheque received and deposited in the bank | 8,25,000 |
| Discount allowed | 37,500 |
| Irrecoverable amount | 17,500 |
| Returns inwards | 28,000 |
| Bills receivable received from customers | 1,05,000 |
| Bills receivable matured | 2,80,000 |
| Bills discounted | 65,000 |
| Bills endorsed to creditors | 70,000 |
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Start your 14-day free trial to unlock the full solution →The Bills Receivable Account gives bills receivable dishonoured = ₹40,000 (balancing figure). Carrying this into the Total Debtors Account, credit sales is the balancing figure. On the data as given the balancing credit sales works out to ₹6,21,000, not the ₹5,16,000 shown in the printed key — the printed figure is not reconcilable with these numbers (see note).
Bills Receivable Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| 2016 Apr 1 | To Balance b/d | — | 7,00,000 | By Cash A/c (bills matured) | — | 2,80,000 | |
| To Sundry Debtors A/c (bills received) | — | 1,05,000 | By Bank A/c (bills discounted) | — | 65,000 | ||
| By Sundry Creditors A/c (bills endorsed) | — | 70,000 | |||||
| By Sundry Debtors A/c (B/R dishonoured) | — | 40,000 | |||||
| 2017 Mar 31 | By Balance c/d | — | 3,50,000 | ||||
| 8,05,000 | 8,05,000 |
Total Debtors Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| 2016 Apr 1 | To Balance b/d | — | 14,00,000 | By Cash A/c | — | 10,75,000 | |
| To Bank A/c (cheque dishonoured) | — | 27,000 | By Bank A/c (cheque received) | — | 8,25,000 | ||
| To Bills Receivable A/c (B/R dishonoured) | — | 40,000 | By Discount Allowed A/c | — | 37,500 | ||
| To Sales A/c (credit sales) | — | 6,21,000 | By Bad Debts A/c (irrecoverable) | — | 17,500 | ||
| By Sales Returns A/c (returns inwards) | — | 28,000 | |||||
| By Bills Receivable A/c (bills received) | — | 1,05,000 | |||||
| 20,88,000 | 20,88,000 |
Working: In the Bills Receivable Account the debit total (₹8,05,000) exceeds the given credit items (₹7,65,000) by ₹40,000, which is the bills receivable dishonoured during the year. This ₹40,000 is re-debited to the Total Debtors Account. Credit sales is then the balancing figure of the Debtors Account = ₹6,21,000. …
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