8/11/2019 7_selfbalance

1/6

SECTIONAL BALANCING

&

SELF-BALANCING SYSTEMS1. What are the different type !f "ed#er$

The following are the different types of ledgers:a) Debtors Ledger: It contains personal accounts of trade debtors to whom goods

are sold on credit. This ledger is also called sales ledger or sold ledger.

b) Creditors Ledger: It contains the personal accounts of trade creditors fromwhom goods are purchased on credit. This ledger is also called purchase

ledger or bought ledger.

c) General Ledger: It contains all real and nominal accounts and remainingpersonal accounts like capital drawings loan bank o!erdraft etc. This ledger

is also called nominal ledger.

%. What are the a!'nt prepared 'nder eti!na" (a"anin# yte)$

"nder sectional balancing system two counts are maintained in the General ledger.

They are:a) Total Debtors #ccount or $ales ledger Control #ccount

b) Total Creditors #ccount or %urchase ledger Control #ccount&. 'hat are the accounts prepared under self(balancing system

"nder self(balancing systems following account are prepared:

a) In General Ledger $ales Ledger #d*ustment #ccount is prepared and in $alesLedger General Ledger #d*ustment #ccount is prepared

b) In General Ledger %urchase Ledger #d*ustment #ccount is prepared and in

%urchase Ledger General Ledger #ccount is prepared.+. Gi!e specimen of Total Debtors #ccount.

In the General Ledger

Total Debtors #ccount or $ales Ledger Control #ccount%articulars ,s. %articulars ,s

To -alance bd/0pening debit balance)

To Credit sales

To -, dishonouredTo -, renewed

To Cash refunded to

CustomersTo $undry charges

/Interest charged and

noting charges)To -alance cd /Closing credit balance)

-y -alance bd /0pening credit balance)

-y Cash recei!ed

-y -, recei!ed-y Discount allowed

-y #llowances gi!en

-y $ales returns-y -ad debts written off

-y Transfer /$et off)

-y -alance cd /Closing debit balance)

!isit us 1 www.geocities.comrkbusinessclass +2

8/11/2019 7_selfbalance

2/6

3. Gi!e specimen of Total Creditors #ccount.

In the General Ledger

Total Creditors #ccount or %urchase Ledger Control #ccount

%articulars ,s. %articulars ,s.

To -alance bd

/0pening debit balance)To -% issuedTo -, recei!ed endorsed

To Discount recei!ed

To #llowances recei!ed

To %urchase returnsT0 Transfer /$et off)

To -alance cd

/Closing credit balance)

-y -alance bd

/0pening credit balance)-y Credit purchases-y -% dishonoured

-y ,efund from creditors

-y #llowances gi!en

-y Interest and e4penses%ayable to creditors.

-y -alance cd

/Closing debit balance)

5. 6ame any fi!e transactions which are not recorded total Debtors #ccount and TotalCreditors #ccount.

a) Cash sales

b) Cash purchases

c) %ro!ision for bad and doubtful debtsd) %ro!ision for discount on debtors and creditors

e) -ad debts pre!iously written off now reco!ered.

f) -ills recei!able discounted.g) Trade discount.

h) -ills payable met during the year

i) Cash recei!ed from bills recei!able on due dates.7. 'hat are the ad!antages of self(balancing and sectional balancing ledgers

Important ad!antages are gi!en below:

a) 8rrors are detected 9uicklyb) If errors creep into any particular ledger only that ledger is checked up. This

sa!es time and energy.

c) It ser!es as a basis of internal check system.

d) The figures of total debtors and total creditors are readily a!ailable.e) It helps to prepare final account 9uickly.

. 'hat are the differences between self(balancing and sectional balancing systems

$elf -alancing $ystem $ectional -alancing $ystem

;