Question

Question 34.
From the following information, ascertain the opening balance of Sundry Debtors and the closing balance of Sundry Creditors:
Sundry Creditors as on 31st March, 2017 – ₹ 20,600
Sundry Debtors as on 31st March, 2018 – ₹ 37,400
Stock as on 31st March, 2017 – ₹ 26,000
Stock as on 31st March, 2018 – ₹ 24,000
During the year ended 31st March, 2018:
Purchases – ₹ 1,10,000
Discount allowed by creditors – ₹ 800
Discount allowed to customers – ₹ 1,100
Cash paid to sundry creditors – ₹ 95,000
Bills Payable issued by them – ₹ 14,000
Bills Receivable received from customers – ₹ 16,500
Cash received from customers – ₹ 1,30,000
Bills receivable dishonoured – ₹ 1,900

Answer 1

The creditors as well as debtors account is shown below:

Explanation:

• The creditors as well as debtors account  is shown as:

• The following are in T shape or form account is the account which is an informal term used for the set of the financial records and it used the double- entry bookkepping.
• Creditors account is the account in which the business or person record all the transactions with the creditor from whom the business or person borrowed services and goods.

Working Note:

Computing COGS as:

Cost of Goods Sold (COGS) = Opening Stock + Purchases – Closing Stock

COGS = Rs 26,000 + Rs 110,000 – Rs 24,000

= Rs 112,000

Computing Sales as:

Sales = Cost of Goods Sold + Gross Profit

where

Gross Profit (GP) = 30/70 x 112,000

= Rs 48,000

So,

Sales = Rs 112,000 + Rs 48,000

= Rs 160,000

Credit Sales = Sales - Cash Sales

= Rs 160,000 – Rs 20,000

= Rs 140,000

You can learn more from here about creditors:

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