Question

From the following information prepare the necessary adjustment accounts as they would appear in the General Ledger of Vatika Ltd.

| Particulars | Rs. |
| Closing debtors balance (as per General Ledger Adjustment A/c) | 60,000 (Cr.) |
| Credit sales | 40,000 |
| Credit purchases | 15,000 |
| Paid to creditors | 7,500 |
| Discount allowed | 1,500 |
| Bills payable accepted | 5,000 |
| Discount received | 500 |
| Received from debtors | 20,000 |
| Closing creditors balance (as per General Ledger Adjustment A/c) | 30,000 (Dr.) |
| Bill accepted by customers | 3,000 |

Discount allowed to debtors Rs.500 was recorded as discount received from creditors.

Answer 1

Debtors’ Ledger Adjustment Account in General Ledger

| Particulars | Amount | Particulars | Amount |
| To Balance b/d (balancing figure) | 49,500 | By Gn. Ledger | |
| To General Ledger Adjustment A/c: Credit sales | 40,000 | AdjustmentA/c: | |
| | | Cash from debtors | 20,000 |
| | | Bills receivable | 3,000 |
| | | Bad debts | 5,000 |
| | | Discount allowed (1,500 +500) | 2,000 |
| | | By Balance c/d (60,000 - 500) | 59,500 |
| | 89,500 | | 89,500 |

Creditors’ Ledger Adjustment Account in General Ledger

| Particulars | Amount | Particulars | Amount |
| To General ledger Adjustment | | By Balance b/d (balancing figure) | 28,000 |
| account: Cash paid to creditors | 7,500 | By General ledger adjustment Accoun | |
| Cash paid to creditors | 5,000 | Credit purchases | 15,000 |
| To Balance c/d (30,000 + 500) | | | |
| | 43,000 | | 43,000 |