For opening debit balance, (Bal bld), this would be brought down as from the previous time period.
For sales, the total amount of sales for any particular period of time will be obtained from the sales day. Then whenever sales are made on credit, the customer who received the products (goods) is debited.
For dishonoured cheque, whenever the customer’s cheque used in settlement of debt is dishonoured by bank, the customer’s account is debited While the bank account is credited.
For bad debt (written back), whenever any debt is found to be bad, that is, irrecoverable debt, the customer’s account will be credited with the bad debt written off (W/O). But whenever it is proved that the customer can still pay up the debt, his account will be debited back (written back) with the same or some portion of the bad debt credited earlier.
For discount disallowed, if for any reason that the discount allowed is rejected (disallowed) then the account will be reversed. It then means that the discount disallowed account is debited back.
For transfers from debtors account to creditors account, this aspect of account can be seen in any side of the account since an agreement may be reached between two different firms concerning making of payment by means of transferring of accounts.
For debtors ledger accounts (credit side), opening credit balance (balance bid): this opening credit balance will be brought down from the previous account. For cash receivable, this is the total amount of cash received from the debtors, which has been posted to the sales ledger account during the period. From the sales ledger columns in the cashbook then posted to the total debtors accounts (debtors ledger account).
For discount allowed, whenever a particular amount of money has been granted to a customer as a discount, either because of his regular buying or by his prompt payment, we then say that it is discount allowed. Therefore, on this note above, the account will be credited.
For return inwards, this is obtained from the total of sales returns book. It normally occurs when there is any default or damage, or open in transit for the goods sold or otherwise. When this happens, it will be credited for it reduces the amount of sales made.
For cash, bank, bills receivable etc, bills receivable is an income and so reduces one’s debt. Whenever cash, bank cheques, bills are received, the customer’s debt (account) will be reduced. When this happens, his account is credited.
For bad debt written off (W/O): For a customer’s account to be considered bad debt, that his account will be credited with bad debts written off (W/O).The reason for writing off this account is that there is every tendency that the debt will be irrecoverable. But when it is later recovered, it becomes bad debt written back that is bad debt (W/B), then this type of account will then be debited as in the debit side of the debtors ledger account. Before we proceed, let us have a ok on a debtors ledger account here below.