Question

From the following information, prepare the bills receivable account and total debtors account for the year ended March 31, 2017.

	Rs
Opening balance of debtors	1,80,000
Opening balance of bills receivable	55,000
Cash sales made during the year	95,000
Credit sales made during the year	14,50,000
Return inwards	78,000
Cash received from debtors	10,25,000
Discount allowed to debtors	55,000
Bills receivable endorsed to creditors	60,000
Cash received (bills matured)	80,500
Irrecoverable amount	10,000
Closing balance of bills receivable on March. 31, 2017	75,500

Answer 1

Debtors Account
Dr.				Cr.
Particulars	Amount Rs		Particulars	Amount Rs
Balance b/d	1,80,000		Return Inwards	78,000
Sales—Credit	14,50,000		Discount Allowed	55,000
			Cash	10,25,000
			Bad debt (irrecoverable amount)	10,000
			B/R (received)	1,61,000
			Balance c/d	3,01,000
			(Balancing figure)
	16,30,000			16,30,000

 

Bills Receivable Account
Dr.				Cr.
Particulars	Amount Rs		Particulars	Amount Rs
Balance b/d	55,000		Cash (Bills matured)	80,500
			Creditors (endorsed)	60,000
			Balance c/d	75,500
Debtors (received)	1,61,000
(Balancing figure)
	2,16,000			2,16,000

The missing figure in the bills receivable account – B/R received from debtors Rs 1,61,000 and the missing figure in the debtors account–closing balance is Rs 3,01,000.