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 debit?

Debtor 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 C
Cash Account

When an asset such as cash is received, it should be debited.

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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. In September when the company receives Rs 2,000 from the customer, which account should the company credit?

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?

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Q. ABC Ltd was incorporated with an authorised Share Capital of

R s . 1, 00, 000

equity shares of

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each. The Board of Directors of the company decided to allot

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shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd.?

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The correct option is C Cash Account When an asset such as cash is received, it should be debited.

The correct option is C
Cash Account

When an asset such as cash is received, it should be debited.