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CA Foundation · Accounting · Accounts from Incomplete Records

Kiran Traders converts its single entry records into double entry. Opening debtors were Rs 80,000, cash received from debtors Rs 3,10,000, discount allowed Rs 5,000, bad debts Rs 7,000, sales returns Rs 18,000, and closing debtors Rs 90,000. All sales are on credit. What is the total sales for the year?

Total sales are Rs 3,50,000. In the Total Debtors Account, credits are cash, discount, bad debts, returns and closing balance, totalling Rs 4,30,000. Deducting opening debtors of Rs 80,000 gives credit sales, which are the only sales here.

  1. ARs 3,50,000
  2. BRs 3,68,000Correct
  3. CRs 3,32,000
  4. DRs 3,40,000

Explanation

In Total Debtors Account, debits: opening 80,000 + sales S. Credits: cash 3,10,000 + discount 5,000 + bad debts 7,000 + returns 18,000 + closing 90,000 = 4,30,000. So S = 4,30,000 - 80,000 = Rs 3,50,000. Check: this is gross credit sales, and returns are already deducted in the credits, so sales is Rs 3,50,000.

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