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Accountancy · Ch 11 — Accounts from Incomplete Records

Ascertainment of Credit Sales

11.4.2

Ascertainment of Credit Sales

The figure of credit sales is also usually not available from incomplete records, and some

other information relating to debtors may be missing too. By preparing the Total Debtors Account,

the credit sales — or any other missing figure relating to debtors — can be traced as the

balancing figure.

Format of Total Debtors Account

DateParticularsJ.F.Amount (₹)DateParticularsJ.F.Amount (₹)
Balance b/d....Cash / Bank (received)....
Bank (cheque dishonoured)....Discount allowed....
Bills receivable (bills dishonoured)....Bad debts....
Credit sales (balancing figure)....Sales return....
Bills receivable (bills received)....
Balance c/d....
××××××

From the credit sales found in the total debtors account, the sales returns are deducted to

arrive at net credit sales. For example, take these figures from the books of Mohanlal Traders: debtors on April 01, 2016 ₹50,000; debtors on March 31, 2017 ₹70,000; cash received from

debtors ₹60,000; discount allowed ₹1,000; bills receivable ₹30,000; bad debts ₹3,000. The Total

Debtors Account is prepared as follows, with credit sales as the balancing figure:

| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |

|:---|:---|:---:|---:|:---|:---|:---:|---:| …