A company using the accrual method of accounting performed services in August. The services were for Rs 2,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September. In September when the company receives Rs 2,000 from the customer, which account should the company credit?

Debtors Account

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Sales Account

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Cash Account

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None of the above

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Solution

The correct option is A
Debtors Account

When customer pays amount, the debtor amount will reduce and since it is reducing we will credit debtors account.

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A company using the accrual method of accounting performed services in August. The services were for Rs 2,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September.
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The correct option is A Debtors Account When customer pays amount, the debtor amount will reduce and since it is reducing we will credit debtors account.

The correct option is A
Debtors Account

When customer pays amount, the debtor amount will reduce and since it is reducing we will credit debtors account.