Session Plan : Preparation of BR account and Total Debtors account

1️⃣ 0–10 min: Introduce the need for BR A/c & Total Debtors A/c in incomplete records (Single Entry).
2️⃣ 10–20 min: Teach format, rules, and preparation of Bills Receivable (BR) Account with examples.
3️⃣ 20–35 min: Explain Total Debtors Account, purpose, format, and formula for credit sales.
4️⃣ 35–42 min: Solve one combined numerical example for BR A/c + Debtors A/c.
5️⃣ 42–45 min: Recap key points and ask 5 important exam questions.

Lecture Material : (PDF, PPT)

Learning Material (IV Quadrant Approach)

(Q1) : Text and Image based Content (PDF/Image Formats)

Let's delve into the preparation of the Bills Payable (BP) Account and the Total Debtors Account under the Conversion Method for transitioning from a Single Entry System to a Double Entry System.

🧾 1. Bills Payable (BP) Account

The Bills Payable Account records the amounts a business owes to creditors through formal bills of exchange. This account helps in determining the total credit purchases and outstanding liabilities at the end of the accounting period.

Format:

Particulars Debit (₹) Credit (₹)

To Balance b/d 10,000

To Bills Accepted 50,000

By Bills Paid 40,000

By Dishonoured Bills 5,000

By Balance c/d 25,000

Explanation:

• Opening Balance (₹10,000): The amount of bills payable at the beginning of the period.

• Bills Accepted (₹50,000): New bills accepted during the period.

• Bills Paid (₹40,000): Payments made against bills payable.

• Dishonoured Bills (₹5,000): Bills that were dishonoured and need to be added back.

• Closing Balance (₹25,000): The outstanding bills payable at the end of the period.

Calculation:

Closing BP = Opening BP + Bills Accepted – Bills Paid + Dishonoured Bills

Closing BP = ₹10,000 + ₹50,000 – ₹40,000 + ₹5,000 = ₹25,000

🧾 2. Total Debtors Account

The Total Debtors Account aggregates all individual debtor accounts, providing a summary of amounts owed by customers. This account is essential for determining credit sales and outstanding receivables.

Format:

Particulars Debit (₹) Credit (₹)

To Balance b/d 50,000

To Credit Sales 200,000

To Bills Receivable 30,000

By Cash Received 180,000

By Bills Receivable Received 30,000

By Discount Allowed 5,000

By Bad Debts 3,000

By Balance c/d 62,000

Explanation:

• Opening Balance (₹50,000): The amount owed by debtors at the beginning of the period.

• Credit Sales (₹200,000): Sales made on credit during the period.

• Bills Receivable (₹30,000): Bills accepted by debtors during the period.

• Cash Received (₹180,000): Payments received from debtors.

• Bills Receivable Received (₹30,000): Bills received from debtors during the period.

• Discount Allowed (₹5,000): Discounts given to debtors.

• Bad Debts (₹3,000): Amounts considered uncollectible.

• Closing Balance (₹62,000): The outstanding amount owed by debtors at the end of the period.

Calculation:

Closing Debtors = Opening Debtors + Credit Sales + Bills Receivable – Cash Received – Bills Receivable Received – Discount Allowed – Bad Debts

Closing Debtors = ₹50,000 + ₹200,000 + ₹30,000 – ₹180,000 – ₹30,000 – ₹5,000 – ₹3,000 = ₹62,000

✅ Significance

• Bills Payable Account: Helps in tracking the company's short-term liabilities and managing cash flow effectively.

• Total Debtors Account: Provides insights into the amounts owed by customers, aiding in credit management and collection efforts.

(Q2) : Video Based Content (Youtube)

(Q3) : Formative Assessment (Google Form/Any Other Online Quiz Platform)