Mr. Piyush has started a new business. He will be getting a business credit card. He will use this credit card to make purchases for his business. This credit card is a type of:

Debtor

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Secured Loan

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Unsecured Loan

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Creditor

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Solution

The correct option is D
Creditor

Mr. Piyush has taken this business credit card for purchase of goods for his business & hence the liability on this credit card shall be recognized as creditor in his books of accounts.

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Similar questions

Which of the following will be credited in a journal, if a business purchases goods on credit?

Which bank launched contactless business credit card in association with Jet Airways for small and mid-sized enterprises?

The payment mechanism typical to e-business

(a) cash on delivery (CoD)

(b) cheques

(d) e-cash

		₹
(i)	Manu started business with cash	1,00,000
(ii)	He purchased furniture for business	20,000
(iii)	Purchase goods on credit from Anshul	6,000
(iv)	Paid to his creditor, Anshul	2,000
(v)	Paid salary to his clerk	1,000
(vi)	Paid rent	500
(vii)	Received interest	200

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