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Question

When a debtor is realized which account is credited _________.

A
cash a/c
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B
miscellaneous income a/c
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C
debtor a/c
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D
profit and loss a/c
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Solution

The correct option is C debtor a/c
Debtor is classifies as personal account. The golden rule of accounting for person account defines that "credit the giver". If any amount is received from a debtor, his account has to be credited by debiting the cash or bank account.

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