Q.A trader could not maintain proper sales records. From the following details, ascertain the Credit Sales for the year by preparing a Total Debtors Account: Opening Debtors (1.4.2022) ₹50,000; Cash received from debtors during the year ₹2,00,000; Discount allowed to debtors ₹5,000; Bad debts written off ₹3,000; Sales Returns from debtors ₹7,000; Closing Debtors (31.3.2023) ₹60,000.

The opening balance of debtors is ₹ 40,000, found by balancing the Total Debtors Account.

In a Total Debtors Account (Accounts from Incomplete Records, TN HSC Commerce), the debit side carries the opening balance and credit sales, and the credit side carries cash received from debtors and the closing balance:

The two sides must be equal, so:

Opening debtors + Credit sales = Cash received + Closing debtors

Opening debtors = 1,40,000 + 20,000 − 1,20,000 = ₹ 40,000.

Credit sales are computed as the balancing figure of the Total Debtors Account — option (b).

When books are kept on a single-entry (incomplete-records) basis, the credit sales figure is not directly available, so it is recovered from a control account. The Total Debtors Account summarises every transaction affecting customers who owe the business:

• Debit side: opening debtors, and credit sales (the figure to be found).
• Credit side: cash/cheque received from debtors, discount allowed, sales returns, bad debts, bills receivable accepted, and closing debtors.

Because every other item is known, credit sales is obtained as the balancing figure of this account. A bills receivable or bills payable account deals with bills, not the sales figure, and the total creditors account gives credit purchases, not sales — so those options are wrong.