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Difficulty: EasyDebtors and Creditors Control Accounts for Missing Figures

The following ledger details were extracted from the single-entry records of Adebayo Traders for the year ended 31 December 2025:

- Opening balance of debtors (1 Jan 2025): ₦15,000
- Cash received from debtors during the year: ₦68,000
- Discount allowed to debtors: ₦2,000
- Bad debts written off: ₦1,500
- Returns inwards: ₦2,500
- Closing balance of debtors (31 Dec 2025): ₦18,000

What is the total amount of credit sales for the year?

Answer: 77000 ₦

Answer

₦77,000
Reconstructing the Sales Ledger (Debtors) Control Account shows a total credit side of ₦92,000 (comprising cash received of ₦68,000, discount allowed of ₦2,000, bad debts of ₦1,500, returns inwards of ₦2,500, and closing debtors balance of ₦18,000). Deducting the opening balance of ₦15,000 gives the missing total credit sales figure of ₦77,000.

Step-by-Step Solution

1
Calculate the total of all credit entries in the Debtors Control Account including the closing balance.
₦68,000 + ₦2,000 + ₦1,500 + ₦2,500 + ₦18,000 = ₦92,000
Cash received, discount allowed, bad debts written off, returns inwards, and closing balance all reduce trade debtors and belong on the credit side of the Debtors Control Account.
2
Subtract the opening debtors balance from the credit side total to derive the missing credit sales figure.
₦92,000 - ₦15,000 = ₦77,000
Credit sales increase trade debtors and represent the debit balancing figure required to equate both sides of the account.

Key Concept

Debtors Control Account for Missing Figures
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Topics

Debtors and Creditors Control Accounts for Missing Figures

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