Accounts from Incomplete Records

the total debtors account is prepared as shown in figure . , credit sales or any other missing figure, as the case may be, can be traced out as the balancing figure. Total Debtors Account (cash received) Bank (cheque received) (bills dishonoured) Bank (cheque Bad debts dishonoured) Credit sales Sales return (bills received) xxx xxx Fig. .

: Showing format of debtors account From the credit sales as ascertained from total debtors account, the sales returns should be deducted from gross credit sales to get net credit sales. For example, the following information is obtained from the books of Mohanlal Traders : Debtors on April , Debtors on March , , Cash received from debtors , , Bad debts The total debtors account will be prepared as follows : Mohan Lal Traders Total Debtors Account Date Date Apr. , Credit sales , , Discount , Bad debts Mar. , , , , , .

. Ascertainment of Bills Receivable and Bills payable Quite often, while all details relating to bills receivable and bills payable are available but the figures of the bills received and bills accepted during the year are not given. In such a situation, total bills receivable account and total