The correct concept of double entry book keeping states that ___________.

for every goods received on credit, the seller becomes your creditor

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for every debit entry, there must be a corresponding credit entry

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for every seller, there must be a buyer

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one party receives and another party gives value

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Solution

The correct option is A for every debit entry, there must be a corresponding credit entry
The correct concept of double entry book keeping states that for every debit entry, there must be a corresponding credit entry

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Similar questions

State whether the following statements are True or False.

1) Prepaid insurance is nominal account.
2) Personal transactions of proprietor are recorded in the books of account of business.
3) Every debit has equal and corresponding credit.
4) Loan account is personal account.
5) Drawing account is a real account.
6) Commission received is a nominal account.
7) Outstanding wages is a nominal account.
8) Bank of India is an example of real account.
9) An order placed for the goods, entry is passed/recorded in the book of account.
10 Every transaction has only on effect

State whether the following statements are true or false:

(1) A journal voucher is must for all transactions recorded in the journal.
(2) Journal is a book of secondary entry.
(3) Narration is not necessary for each and every journal entry.
(4) Every transaction is recorded first in the journal.
(5) Live Stock A/c is a Nominal A/c.
(6) Bank of Maharashtra A/c is a Nominal A/c.
(7) Brokerage paid on sale of goods is debited to brokerage A/c.
(8) If the goods are sold the entry should be recorded in the journal.
(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
(10) Cash discount does not appear in the books of accounts.
(11) If rent is paid to the landlord, landlord’s A/c should be debited.
(12) Book keeping records monetary transactions only.
(13) Drawings made by the proprietor increases his capital.
(14) Premium paid on the life policy of the proprietor should be debited to insurance premium account.

Q. When goods are sold on credit basis the seller becomes a _________ and a buyer becomes a ___________.

When a buyer returns goods to the seller, he sends a _______ as intimation to the seller of the amount and quantity being returned and requesting the return of money. Whereas when a Seller receives goods (returned) from the buyer, he prepares and sends a _______ as intimation to the buyer showing that the money for the related goods is being returned in the form of a credit note.

Q. In a party every person shakes hands with every other person. If there was a total of 105 handshakes in the party, find the number of persons who were present in the party.

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The correct concept of double entry book keeping states that ___________.

The correct option is A for every debit entry, there must be a corresponding credit entryThe correct concept of double entry book keeping states that for every debit entry, there must be a corresponding credit entry

The correct option is A for every debit entry, there must be a corresponding credit entry
The correct concept of double entry book keeping states that for every debit entry, there must be a corresponding credit entry