Q.Closing balance of debtors ₹ 20,000, Cash received ₹ 1,40,000, Credit sales ₹ 1,20,000 Opening balance of debtors :

When several figures relating to debtors or creditors are known but exactly one is missing (most often credit sales, credit purchases, or a closing balance), a Total Debtors Account or Total Creditors Account is reconstructed by pooling all debtors (or all creditors) into a single account and entering every known item — opening balance, cash received or paid, discount, bad debts, returns, and bills transactions — on its correct side. Because a complete account must always balance, the one missing figure is found simply by making the two sides equal (th …