Question

From the following information prepare the bills receivable account and total debtors account for the year ended December 31,2005.

$\begin{array}{cc}& \text{Rs.}\\ \text{Opening balance of debtors}& 1,80,000\\ \text{Opening balance of bills receivable}& 55,000\\ \text{Cash sales made during the year}& 95,000\\ \text{Credit sales made during the year}& 14,50,000\\ \text{Return inwards}& 78,000\\ \text{Cash received from debtors}& 10,25,000\\ \text{Discount allowed to debtors}& 55,000\\ \text{Bills receivable endorsed to creditors}& 60,000\\ \text{Cash received (bills matured)}& 80,500\\ \text{Irrecoverable account}& 10,000\\ \text{Closing balance of bills receivable on Dec.31,2005}& 75,500\end{array}$

Answer 1

$\text{Dr.}\text{Debtor's Account}Cr.\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt.(Rs.)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt.(Rs.)}\\ & \text{Balance b/d}& & 1,80,000& & \text{Return}& & \\ & \text{Sales}& & 14,50,000& & \text{Inwards}& & 78,000\\ & & & & & \text{Discount}& & \\ & & & & & \text{allowed}& & 55,000\\ & & & & & \text{Cash}& & 10,25,000\\ & & & & & \text{Bad debts}& & 10,000\\ & & & & & \text{Bills}& & \\ & & & & & \text{receivable}& & \\ & & & & & \text{(Acceptance}& & \\ & & & & & \text{received)}& & 1,61,000\\ & & & & & \text{Balance c/d}& & 3,01,000\\ & & & & & \text{(Balancing}& & \\ & & & & & \text{figure)}& & \\ & & & \underset{–}{\underset{–}{\overline{16,30,000}}}& & & & \underset{–}{\underset{–}{\overline{16,30,000}}}\end{array}$

$\text{Dr.}\text{Bills Receivable Account}Cr.\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs.)}\\ & \text{Balance b/d}& & 55,000& & \text{Cash/Bank}& & 80,500\\ & \text{Debtors}& & & & \text{Creditors}& & \\ & \text{(Acceptance}& & & & \text{(endorsed)}& & 60,000\\ & \text{Received)}& & 1,61,000& & \text{Balance c/d}& & 75,500\\ & \text{(Balancing}& & & & & & \\ & \text{figure)}& & & & & & \\ & & & \underset{–}{\underset{–}{\overline{2,16,000}}}& & & & \underset{–}{\underset{–}{\overline{2,16,000}}}\end{array}$