Accounts Receivable T Account
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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