A company using the accrual method of accounting performed services in August. The services are for Rs 2,000 which needs to be paid in the month of september. Assuming that the company prepares monthly income statements, what account will be debited for Rs 2,000 in August?

Debtors Account

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Sales Account

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Purchases Account

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None of the above

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Solution

The correct option is A
Debtors Account

The Debtors account should be debited as it is an asset which is increasing.

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A company using the accrual method of accounting performed services in August. The services are for Rs 2,000 which needs to be paid in the month of september. Assuming that the company prepares monthly income statements, what account will be debited for Rs 2,000 in August?

The correct option is A Debtors Account The Debtors account should be debited as it is an asset which is increasing.

The correct option is A
Debtors Account

The Debtors account should be debited as it is an asset which is increasing.