Normally the personal accounts of deblurs show a debit balance and the. personal accounts of creditors A credit balance, Sometimes, a debtors account may show a credit balance And a credit's account to debit balance. It usually happens on ‘ account of over-payments. In such a situation both the debit and the credit balances are shown separately in the Adjustment Accounts. For example, the total of debit balances o! various debtors Is Rs. 60,000 and the total of credit balances Rs. 80. These will be shown in the respective Adjustment Accounts as follows: 

Transfers: Sometimes goods are bought from the person who is also a customer to the business. In such a situation, his personal account will appear in both the Debtors Ledger and the Creditors Ledger. The settlement of such accounts is made by paying or receiving the net amount. Hence, it becomes necessary to transfer his account from the ledger where it shows a lower balance to the other where his account shows a higher balance.

For example, Ganesh's personal account in Debtors Ledger shows a debit balance of Rs. 10,800 and his personal account in Creditors Ledger shows a credit balance of Rs. 1,000. In such a situation, the credit balance of Rs. 1,000 in Ganesh's Account will be transferred from Creditors Ledger to his account in Debtors Ledger. Such transfer should also be recorded in the Adjustment Accounts