AOA...SIR how are you...again i want to ask about ...Debtors Control Account
could you plz tell me the opening balance or opening debtor is on the debit side then closing debtor or closing balance is also on the Debit Side or it will be posted on the Credit Side...if it is on credit side then why ?
grateful to you if you will tell thanks
Nausheen Khan from Pakistan
I am fine. It is very simple. Debtors are our current asset. We have to take money from them because we have sell the goods on credit. It is just like we give loan to our debtors. Opening balance must be in the debit side because all current asset's balance will be debit. It means, in the starting of year, we have to take money from our debtor. During the year, some more credit sale may be done or we may get amount from our debtor. So, in the end of year, we calculate the difference between the debit side of debtor control account and credit side. Debit side will more than credit side. We show the balance in credit side by writing balance c/d. It means, we are carrying this balance. Actually, this is also debit balance, next year this balance will be shown in the opening balance by writing balance b/d, it means we have brought the balance from carried balance. Ok