Accountancy · Ch 11 — Accounts from Incomplete Records
Ascertaining Credit Purchases
Ascertaining Credit Purchases
The figure of credit purchases is usually not available from incomplete records, and some other
information relating to creditors may also be missing. By preparing the Total Creditors Account,
the credit purchases — or any other missing figure relating to creditors — can be found as the
balancing figure.
Format of Total Creditors Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| Cash paid | .... | Balance b/d | .... | ||||
| Bank (cheques issued) | .... | Bank (cheques dishonoured) | .... | ||||
| Bills payable (bills accepted) | .... | Bills payable (bills dishonoured) | .... | ||||
| Discount received | .... | Credit purchases | .... | ||||
| Purchases return | .... | ||||||
| Balance c/d | .... | ||||||
| ××××× | ××××× |
For example, take these figures from M/s Kisan Food Suppliers: opening balance of creditors
₹40,000; closing balance of creditors ₹50,000; payment made in cash ₹85,000; discount received
₹2,000. The Total Creditors Account is prepared as follows, with credit purchases appearing as
the balancing figure:
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) | …