Accounts Receivable T Account



About Accounts Receivable / Debtor T Account or Ledger
Here we will study about Accounts Receivable T Account or Control Ledger in Accounting.


Accounts Receivable / Debtor T Account or Accounts Receivable Control Ledger is the Master Ledger Account which shows the various Business Transactions related to Accounts Receivable / Debtor and these Transactions are transferred from the Journal Of Each Accounts Receivable / Debtor that record Business Transactions related to each individual 's customers or Accounts Receivable Subsidiary Ledgers or Sub-Ledgers.




If the company has just started its business , then there is no Opening Balance of Accounts Receivable. For the next Accounting Period or Accounting Cycle, Accounts Receivable T Account has a Opening Balance. The Closing Balance is the balance that is transferred to Balance Sheet. This Closing Balance is calculated at Net Realizable Value by Deducting Allowance For Doubtful Accounts in order to give true and reliable information to the Users of Financial Statements.





For The First Accounting Period, Accounts Receivable Ledge for Company ABC is shown as below:


  ABC Company
  Accounts Receivable Account
  For The Year 2017

                                   Rs.                                                                      Rs.
 
 

Closing Balance      700000





For the 2nd Year, the Ledger is prepared after passing Accounting Journal Entries for Sales, Bad Debts and Allowance For Doubtful Accounts And Cash Received From Customers For Goods Sold on Credit Basis or Services Rendered On Account.




  ABC Company
  Accounts Receivable Account
  For The Year 2018

                                         Rs.                                                                       Rs.

Opening Balance b/d    700000
 
Sales                             100000                                            Cash              100000

                                                                                              Bad Debts     1000

Closing Balance c/d     701000





The Closing Balance is Transferred To Balance Sheet and Closing Balance of Allowance For Doubtful Accounts is deducted from this Closing Balance of Accounts Receivable / Debtor in order to get Net Relizable Value of Accounts Receivable according To Matching Principle GAAP.




So, it is all about Accounts Receivable T Account or Ledger Account in Accounting.




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