Opening balance of debtors will be posted in which side of debtors account ?

Opening Balance of Debtors will be posted in Debit side of Debtors Account, if Opening Balance shows Debit Balance.

Opening Balance of Debtors will be posted in Credit side of Debtors Account, if Opening Balance shows Credit Balance.

Accounting treatment for Closing and Opening Balance of Debtors Account.

Closing Balance of a Debtor Account means, the Balance as at the end of an Accounting period.

Opening Balance of a Debtor means, the Balance same as Closing Balance of that Debtor for just immediately ended previous Accounting period.

• If a Debtor's Closing Balance shows Debit Balance, the Opening Balance for immediately next Accounting period will be posted in Debit side of that Debtor's Ledger Account.

• If a Debtor's Closing Balance shows Credit Balance, the Opening Balance for immediately next Accounting period will be posted in Credit side of that Debtor's Ledger Account.

Example - 1

In the Books of M/s.Albert, Ledger Account Balance of Mr.Henry at the end of date 31/12/2021 shows a Debit Balance for ₹9,520/- i.e Closing Balance as on date 31/12/2021 is ₹9,520/-(Dr.).

For the above Closing Balance of Mr.Henry, Opening Balance as on date 01/01/2022(just immediately next day of date 31/12/2021) is ₹9,520/-.

Opening Balance for ₹9,520/- as on date 01/01/2022 should be posted in the Debit side of Mr.Henry's Ledger Account.

Example - 2

In the Books of M/s.Albert, Ledger Account Balance of Mr.Sundaram at the end of date 31/12/2021 shows a Credit Balance for ₹6,721/- i.e Closing Balance as on date 31/12/2021 is ₹6,721/-(Cr.)

For the above Closing Balance of Mr.Sundaram, Opening Balance as on date 01/01/2022(just immediately next day of date 31/12/2021) is ₹6,721/-(Cr.)

Opening Balance for ₹6,721/- as on date 01/01/2022 should be posted on the Credit side of Mr.Sundaram's Ledger Account.