Debtors and Creditors How to make

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Daya (Querist)
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13 May 2025 How to make Debtors and Creditors Reco.
What to add In Debtors and Less Creditors
What to add in Creditors and Less Creditors
If Transaction involves
Sale - Purchase
Payment -Received
Discount Given- Discount Received
TDS paid - TDS Receivable
Round off.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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12 August 2025 Sure! Here’s a simple guide on how to prepare **Debtors and Creditors Reconciliation** considering the transactions you mentioned:

---

## 1. **Debtors Reconciliation**

### Start with:

* **Opening Debtors balance** (from books)

### Add:

* **Sales on credit** (amounts billed to customers)
* **TDS Receivable** (if deducted by customers but not yet received/refunded)
* **Discount Received** (if applicable, usually not on debtors side, so usually ignored here)
* **Any other receivables or adjustments related to customers**

### Less:

* **Payments received from customers**
* **Discount Given to customers** (reduces amount receivable)
* **TDS Paid (if you have paid on behalf of customer, but mostly TDS Receivable is more relevant here)**
* **Round off adjustments**

---

## 2. **Creditors Reconciliation**

### Start with:

* **Opening Creditors balance** (from books)

### Add:

* **Purchases on credit** (amounts purchased from suppliers)
* **TDS Paid** (if deducted on your payment to suppliers)
* **Discount Given** (usually discount allowed by suppliers reduces amount payable, so it’s deducted, not added)
* **Any other payables or adjustments related to suppliers**

### Less:

* **Payments made to suppliers**
* **Discount Received from suppliers** (reduces your payable)
* **TDS Receivable (if any, normally less common on creditors side)**
* **Round off adjustments**

---

### Notes:

* **Discount Given:** When you give a discount to customers, it reduces your debtors. When a supplier gives a discount, it reduces your creditors.
* **TDS Paid:** If you have deducted TDS on payments to suppliers, that amount is reduced from the payable to creditors and recognized as TDS Receivable.
* **Round off:** Adjust any rounding differences separately.

---

### Sample format:

| Particulars | Amount (₹) | Particulars | Amount (₹) |
| --------------------------- | ---------- | ----------------------------- | ---------- |
| **Debtors Opening Balance** | X | Payments Received | X |
| Add: Sales on Credit | X | Less: Discount Given | X |
| Add: TDS Receivable | X | Less: Round off | X |
| Less: Discount Given | X | | |
| **Closing Debtors Balance** | X | **Creditors Opening Balance** | X |
| | | Add: Purchases on Credit | X |
| | | Add: TDS Paid | X |
| | | Less: Payments Made | X |
| | | Less: Discount Received | X |
| | | Less: Round off | X |
| | | **Closing Creditors Balance** | X |

---

If you want, I can help you prepare a detailed reconciliation statement with example figures. Would you like that?

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