SELF BALANCING AND SECTIONAL BALANCING

Problem 1: From the following particulars obtained from the books of Mr. A, a trader, prepare
the relative adjustment account for the year ended 31.12.2023
01.01.2023- Opening Balance Rs. 30,000
Upto 31.12.2023- Credit Sales Rs. 90,000; Sales Return Rs. 500; Cash received from Debtors
Rs. 40,000; Bills Receivables Rs. 15,000; Discount Allowed to Debtors Rs. 400; Bad Debt Rs.
350; Transfer from another ledger Rs. 750; Bills Receivables endorsed to suppliers Rs. 1,000;
Bills Receivables discounted Rs. 200.
Problem 2: Prepare necessary Accounts under Self Balancing System
01.04.2022 31.03.2023
Sundry Debtors (Dr) 11,000 ?
Sundry Debtors (Cr) 2,000 1,600
Sundry Creditors (Cr) 9,000 ?
Sundry Creditors (Dr) 1,100 800
Summarised transaction during the year:
i) Total Sale Rs. 2,50,000 (20% is cash sale)
ii) Total Purchase Rs. 1,60,000 including cash purchase of Rs. 30,000
iii) Cash received from credit customers Rs. 62,000
iv) Cheque received from credit customers 16,000
v) Bills Receivable accepted by credit customers Rs. 38,000
vi) Cash paid to supplier Rs. 18,000
vii) Cheque paid to supplier Rs. 39,000
viii) Bills payable accepted in favour of supplier Rs. 42,000
ix) Discount allowed to customers Rs. 700
x) Bad Debt written off Rs. 1,300
xi) Discount received from supplier Rs. 800
xii) Bad Debt recovered Rs. 3,200
xiii) Provision for Bad Debt created Rs. 2,800
xiv) Provision for discount on debtors created Rs. 230
xv) Transfer from Purchase Ledger to Sales Ledger Rs. 700
xvi) Transfer from Sales Ledger to Purchase Ledger Rs. 500
xvii) Bill endorsed to supplier Rs. 12,000
xviii) Cheque received from customer dishonoured Rs. 3,500
xix) Bill held till maturity and dishonoured Rs. 2,500
xx) Endorsed bill dishonoured Rs. 2,000
Problem 3: Mr. X has three ledgers in use: a Sales Ledger, a Bought Ledger and a Nominal
Ledger, all of which are kept in Self balancing System. From the following particulars
prepare Sales Ledger Adjustment A/c in the General Ledger and Nominal Ledger Adjustment
A/c in the Bought Ledger.
01.01.2022 Balance of Creditors (Dr) 150
Balance of Creditors (Cr) 4,500
Balance of Debtors (Cr) 250

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 Balance of Debtors (Dr) 8,700
31.03.2023 Credit Purchases 45,000
Bills Receivable Drawn on Customers (Excluding bill renewed) 3,000
Bills Payable Accepted 2,000
Sales (including cash sales of Rs. 5,000) 60,000
Return Outward 1,500
Interest on Customers A/c over due for payment 300
Sales Returns 450
Cash and Cheques received from customers 32,000
Credit balance transferred from Bought Ledger to Sales Ledger 85
Cheques Dishonoured 500
Bills Receivables endorsed to Supplier 300
(all these bills were duly honoured)
Bills Receivables dishonoured & fresh bills drawn 1,200
with interest of Rs. 200
Cash paid to suppliers 25,000
Allowances to Customers 100
Allowances Received 150
Bad Debt Written off 150
Bad Debt Reserve 500
Credit Balance Transferred from Sales Ledger to Bought Ledger 100
Purchase Ledger Balance (Dr) 84
Sales Ledger Balance (Cr) 112

Problem 4: Mr. V maintains his books of A/cs under Sectional Balancing System. From the
following particulars prepare the Total Creditors A/c as would appear in the General Ledger
of Mr. V.
01.01.2009 Opening Balance (Cr) 12,400
Opening Balance (Dr) 270
31.12.2009 Purchase (including cash purchase 4,000) 23,000
Cash & Cheque paid to Suppliers 18,500
Bills Payable accepted 3,000
Recovery of Bad Debt previously written off 60
Returns (Dr) 380
Returns (Cr) 250
Bills Receivable endorsed 480
Bills payable dishonoured 300
Cheque Dishonoured 200
Endorsed bill dishonoured 240
Bills Receivable Discounted 600
Discount received 100
Interest charged by suppliers 10
Transferred from Sales Ledger 300
Closing Balance (Dr) 150

Problem 5: The following details are extracted from the books of a company. Prepare Total
Debtors A/c and Total Creditors A/c
01.01.2023 Balance of Sundry Debtors 32,000

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 Balance of Sundry Creditors 37,000
30.06.2023 Balance of other Accounts:
Credit Purchase 9,000
Credit Sales 19,600
Cash Sales 1,500
Cash Purchase 1,000
Paid to Creditors 19,750
Cash Received from Debtors 15,600
Bills Payable Accepted 3,000
Bills Receivable Received 6,000
Return Inward 1,750
Return Outward 1,200
Discount Allowed to Debtors 950
Discount Allowed by Creditors 950
Provision for Bad Debt 320
Bad Debt 900
Bills Receivable dishonoured 750
Bad Debt previously written off, now recovered 500

Problem 6: Prepare Total Debtors A/c and Total Creditors A/c

Sales 2,04,000; Purchase 1,40,000; Cash Received from Debtors 1,55,000; Cash Paid to
Creditors 1,37,000; Allowances to Debtors 2,000; Amount due to suppliers as shown by
Creditors Ledger set off against amount due from the same party as shown by debtors ledger
1,400; Bad Debt 1,100; Cash received in respect of debit balance in Creditors A/c 1,100;
Return Inward 9,900; Bills Receivable 40,000; Return Outward 1,500; Bills Receivable
Dishonoured 2,500; Discount Received 3,000; Discount Allowed 2,500; Cash Refundable to
Debtors 500.
On 01.04.23 the Debtors Balance were 18,300(Dr) & 200(Cr); Creditors Balance were 16,900
(Cr) & 1,100 (Dr)

Practice Questions
Problem 1: The following information is extracted from the books of Shri Hari for the year
ended 31.03.2023
Sales- Rs. 3,80,800
Purchase- Rs. 3,26,000
Return Outward- Rs. 14,000
Cash Received from Debtors- Rs. 1,78,200
Bills Payable Accepted- Rs. 1,22,000
Return Inward- Rs. 17,600
Cash paid to Creditors- Rs. 1,86,000
Bills Receivables Received- Rs. 1,36,000
Discount Received- Rs. 4,000
Bad Debt written off- Rs. 24,000
Reserve for discount of Debtors- Rs. 2,000
Discount Allowed- Rs. 1,800
Transfer from purchase Ledger- Rs. 26,600
The total of the Sales Ledger balance on 01.04.2022 was Rs. 90,600 and that of purchase ledger
balance was Rs. 78,600

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Prepare Sales Ledger Adjustment A/c & Purchase Ledger Adjustment A/c.
Problem 2: 01.04.2022 31.03.2023
Debtors Ledger Adjustment A/c (Dr) 21,000 ?
Debtors Ledger Adjustment A/c (Cr) 3,000 1,000
Creditors Ledger Adjustment A/c (Cr) 23,000 ?
Bills Receivable 6,000 11,000
Bills Payable 4,000 9,000
Transaction during the year
1) Cash received from customers Rs. 48,000
2) Cheque received from customers Rs. 62,000
3) Credit Sale Rs. 2,30,000; Cash Sale Rs. 80,000
4) Bills Receivable matured during the period Rs. 75,000
5) Bills endorsed to Supplier Rs. 10,000
6) Bill dishonoured during the period Rs. 8,000 including dishonour of endorsed bill Rs.
2,000 and discounted bill Rs. 3,500
7) Bill discounted during the period Rs. 32,000 at Rs. 31,400
8) Bills Payable honoured during the period Rs. 21,000
9) Credit Purchase Rs. 61,000, Cash Purchase Rs. 29,000
10) Cash Payment to Creditors Rs. 5,000
11) Cash Received from Customers in point (1) includes
a) Bad Debt Recovery of Rs. 2,000
b) Collection for sale of old furniture Rs. 1,000
c) Goods sold at the end of the period Rs. 4,000 but not recorded in the Books of
Accounts
Show necessary Accounts under Self Balancing System

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