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 |