Journal for Receipts from Debtors

by Nek
(Mauritius)

Q: Where do receipts from debtors go?

A: I assume you mean which journal debtor receipts should be recorded in. If so, receipts from debtors are recorded the cash receipts journal (where you put all cash receipts).

Journal for Payment from Debtor with Discount Allowed

Q: Leech owes Smith $50. He pays by cheque after deducting a 10% discount. What is the entry in Smith's books?

A: The journal entry for this transaction is as follows:

Dr Bank $45
Dr Discount Allowed (expense) $5
Cr Leech (debtor's account) $50

Debtors List: Details Column

by Megan
(South Africa)

Q: What do you write in the details column in the debtors list?

A: Megan, I don't think there's any hard-and-fast rule for this, but I would say that if you don't have another column where you write the individual debtor's (customer's) specific name, then you could write their name here in the "details" column (e.g. "Mary Starr" or "Joe Blow"). If there's already a separate column for their name, then you could write any other details you feel would describe the transaction adequately under the "details" column, such as what they bought (e.g. "3 pairs of black Nike socks").

Debtors Control

by Ronel Britz
(South Africa)

Q: Hi, When posting to the general ledger from the cash receipts journal, you post to the credit side. Is this because debtors control and settlement discount granted are considered liabilities or capital? Thank you.

YEAR END PROCEDURE FOR DEBTORS

Q: WHAT MUST I DO WHEN IT COMES TO YEAR END AND THERE IS STILL A BALANCE OUTSTANDING FOR DEBTORS?

Advertise on Accounting-Basics-for-Students.com