Departmental accounts

Deepak Gupta

You are running a business. You sell the goods to Mr. X. He says, I'll pay after 10 days. So, its a receivable for you (i.e. you will receive money from him) Such receivable will be an asset or to be more specific current asset (as the outstanding receivable will be converted into cash within a year)

Thread Starter

What if it s my drawings

Deepak Gupta

You mean to say that if you withdraw goods for personal use from the business? If that is the case, then it will be an addition to your drawings and further reduction in capital. On the other hand, the cost of such goods will be reduced from the purchases a/c in business. Dr. Capital A/c / Drawings A/c (in BS) Cr. Purchases A/c (In Trading A/c)

Thread Starter

In this ques ,it s drawings only ..i don't know y debited

CA Suraj Lakhotia Admin

It has to be added to drawings.

CA Suraj Lakhotia Admin

It has to be added to drawings.

CA Suraj Lakhotia Admin

It should not be a debtor. You should reduce from capital.

Thread Starter

Then why s it shown on assets side as customer account sir

CA Suraj Lakhotia Admin

The book could have made an error.

Thread Starter

If I don't add ,balance sheet s not tallying sir

CA Suraj Lakhotia Admin

Remove debtor from assets. Add that amount to drawings - drawings will be higher to that extent.

CA Suraj Lakhotia Admin

Remove debtor from assets. Add that amount to drawings - drawings will be higher to that extent.

Thread Starter

Sir my ques is if customers account s not shown on assets side ,it s not talling

CA Suraj Lakhotia Admin

Correspondingly did you increase the drawings amount?

Thread Starter

I subtracted from capital sir

CA Suraj Lakhotia Admin

Can you share your solution once.

Thread Starter

Ques on the left and answer on the right sir

CA Suraj Lakhotia Admin

That customer's balance is different from the drawings given. You mixed up two different accounts.