2ACO20 –Accounting

An example
Spyros Sporting Goods keeps a separate ledger for debtors. On 1 July 2020 the schedule or
list of debtors balances were as follows.

$
D Ablett 800
R Beach 1600
T Green 1200
I Wilkins 600
4200

The following transactions occurred in July in relation to debtors.

Credit Sales R Beach $400

T Green $800
D Ablett $200

Sales Returns T Green $200

Cash Receipts R Beach $1120 Discount $80

T Green $1300 Discount $100
D Ablett $760 Discount $40

Bad debts written off I Wilkins $300

Required

 Complete the accounts in the general ledger for July and show the balance of the
debtors control account at 31 July.
 Prepare the debtors’ schedule that reconciles the debtors’ ledger at 31 July.

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General Ledger

Debtors Control Cash

1/7 Balance 4200 31/7 Sales Ret 200 31/7 Debtors
Ctrl 3180
31/7 Sales 1400 Cash 3180

Disct Exp 220

Bad 600
Debts
Balance 1400

5600 5600

Sales Bad Debts

31/7 Debtors 31/7 Debtors 600

Ctrl 1400 Ctrl

Sales Returns Discount Expenses

31/7 Debtors 31/7 Debtors 220

Ctrl 200 Ctrl

* When using a subsidiary ledger every transaction involving a debtor will need a ‘triple entry’, ie the

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Debtors Ledger

D Ablett T Green
1/7 Balance 800 31/7 Cash 760 1/7 Balance 1200 31/7 Sales 200
Ret
31/7 Sales 200 Disct Exp 40 31/7 Sales 800 Cash 1300

Disct 100
Exp

R Beach I Wilkins
1/7 Balance 1600 31/7 Cash 1120 1/7 Balance 600 31/7 Bad 600
debts
31/7 Sales 400 Disct Exp 80

Schedule of Debtors as at 31 July 2020

D Ablett $200
R Beach $800
T Green $400 The total of the schedule is used
$1400 as a check against the control
account in the general ledger

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2ACO20 –Accounting

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