Debtors and Creditors How to make

Save Share

This query is : Resolved

Daya (Querist)

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

Aashok Kumar Sharma

(Expert)

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?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now