Total Debtor Accounts Versus Individual Ledgers

August 12th, 2006 Comments off
Share |

As described in the first part of the article, the balance in the TOTAL/Control Debtor Account must equal to the SUM of the individual balances of debtor account.

This article seeks to look at:

  • what comprises  the individual total item in the Debit And Credit Side of the TOTAL/Control Debtors Account ( left side of the table) and
  • the debits and credits in the individual ledgers ( right side of the table) which when sum up must tally with the TOTAL/Control Debtors Account

DEBIT Side of Total Debtor Account

Verified/Obtained from the following ledgers

Opening Debit Balance

Opening balances will be brought down from the previous period  and agree with the total of the last schedule of debtors

Sales made during the period

Total amount of sales obtained from the Sales Day Book.

Dishonoured bills and cheques (if any)

Can be traced either to journals or Bills Receivable Register

Cash paid to debtors (if any)

If there is any paid to our debtor, it can be either traced from the journal or cash book

CREDIT Side of Total Debtor Account

Verified Against the following ledgers

Opening credit balances (if any)

Opening balances will be brought down from the previous period  and agree with the total of the last schedule of debtors

Cash received from debtors during the period

Traced to the Sales Ledger column in the Cash book as the individual receipts are total at certain interval to be posted to the Total Debtor a/c

Discounts allowed to debtors

Traced from the totals of the Discount column on the debit side of the Cash book and from Cash discount column ( if any ) in the bills receivable book. / journal

Return Inwards and allowances

Traced from the sales returns book which will be posted to the Total Debtor Account periodically. Allowances can be traced to journals

Bills receivable

Traced from Bill Receivable Book

Bad debts written off

Traced from the analysis of the journals

Comments are closed now.

Financial Accounting

 
 

Advertise Here | Brain Teasers/Puzzles | Greeting Cards | Inspirational Quotes | Jokes/Humor | Useful Links | Motivational Stories | Resource | Shopping | Share/Express Your Views | Testimonials | Universities/Colleges | Words of Wisdom from Religions | FREE POSTING OF ACCOUNTING & FINANCE JOBS VACANCY|