The company sells product A for Rs 65,000 on credit. The company receives a payment for the Rs 65,000 invoice above in cash. Which account shall be credited?

Debtor`s account

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Creditor`s account

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Bank account

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Cash account

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Solution

The correct option is A
Debtor`s account

When amount is paid, we will have to credit accounts receivable for reversing the earlier debit.

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The company sells product A for Rs 65,000 on credit. The company receives a payment for the Rs 65,000 invoice above in cash. Which account shall be credited?

The correct option is A Debtor`s account When amount is paid, we will have to credit accounts receivable for reversing the earlier debit.

The correct option is A
Debtor`s account

When amount is paid, we will have to credit accounts receivable for reversing the earlier debit.