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It means calculating Age of Debtors i.e.number of days from which amount is due from debtors

 

Points to be considered while creating debtor ageing report

  1. While creating ledgers of parties, we have to mention credit period.
  2. Mention invoice no. Of the parties while doing entries of sale and receipt of payment.(New Reference/Against Reference/Advance or On Account)

    For new bills

    Select New Ref

    Enter invoice no.

    Credit period allowed

    Put Amount of bill

     

    Receipt of payment(if bill avlbl)

    Select Agst Ref

    Enter invoice no.

    Credit period allowed

    Put Amount of bill

     

    Payment received in advance

    Select =Advance

    Enter Advance date

    Credit period allowed

    Put Amount of bill

     

    Where  bill number not available

    Select On Account

    Put Amount of bill

  3. After completing all the entries, we have to create periodically debtor aging report.
    • Select Co. In tally
    • Display
    • Statement of accounts
    • Outstanding
    • Receivables
    • Select period
    • F6 age wise
    • Ageing by due date
    • Select criteria as required by company 
      • From 0 to 30 days
      • From 30 to 60 days
      • 60 to 180 days
  4. Then export in Excel (Alt E --> Esc --> Put file Name --> Select Excel format --> Ctrl A or Enter Enter)
  5. After discussing with the management, we have to make provisions for the bad debts and write off the actual bad debts occurred during our period.

 

 

DEBTOR AGING ASSIGNMENT

  1. Sales made to A Ltd 30000+ vat 5%(Bill No S01 dated 01/04/2016)
  2. Sales made to B Ltd 80000+ vat 5%(Bill No S02 dated 01/05/2016)
  3. Sales made to A Ltd 100000+ vat 5%(Bill No S03 dated 01/06/2016)
  4. Amount received from B Ltd towards Bill S02 ( Rs 70000 by cheque and balance by cash) on 01/07/2016
  5. Rs 80000 received by cheque towards Bill No S03 on 1/08/2016
  6. Advance received from C ltd by NEFT Rs 10000 form goods to be sold on 1/09/2016
  7. Sales made to C Ltd 20000+ vat 5%(Bill No S04 dated 01/10/2016
  8. Amt received from C ltd by cash in full settlement Rs 7000 on 1/11/2016
  9. On 31 March 2017, The company estimates that only Rs 25000 more is recoverable from A ltd regarding both bills
  10. Rs 20000 received from A ltd in full settlement by cash on 1/05/2017
  1. Accounts Tax
  2. Tally
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com.
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