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CA Foundation · Accounting · Accounts from Incomplete Records

In preparing a Total Debtors Account from incomplete records, which of the following items would appear on the CREDIT side of the account?

Bills receivable received from debtors go on the credit side of the Total Debtors Account, because acceptance of a bill settles the debtor's liability. Credit sales, dishonoured bills and opening debtors are debit items that increase the amount owed by customers.

  1. ABills receivable received from debtors during the yearCorrect
  2. BCredit sales for the year
  3. CBills receivable dishonoured during the year
  4. DOpening balance of debtors

Explanation

The Total Debtors Account is debited with the opening balance, credit sales, dishonoured bills and cheques dishonoured. It is credited with cash received, discount allowed, sales returns, bad debts and bills receivable accepted by debtors. Credit sales, dishonoured bills and the opening balance are all debit items.

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