Total Debtors Account

08/07/2020 0 By indiafreenotes

When you purchase goods on credit it is entered in the purchase book. The entries in the purchases book is sumedup and journal entries passed as purchases a/c Dr. to Sundry Debtors a/ the end of the month. Similar method followed in sales book and entries are sumed up Sundry Debtors a/c is debited and sales account is credited. Similarly bills payable are entered in the bills payable book and bills receivable are entered in the bills receivable book and synes up respectively and Bills receivable a/c is debited with sundry debtors and sundry creditors are debited bills payables a/ c is credited .In the book -keeping various books are maintained such as cashbook purchases book sales book sundry debtors book sundry creditors book bills payable book ,bills receivable book , general ledger petty cashbook and journal entry register.

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.