Which of the following accounts will be used in equation, if the goods are sold on credit to Mr. Mahmood?

Cash & Capital

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Accounts receivable & cash

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Accounts receivable & capital

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Accounts payable & capital

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Solution

The correct option is C
Accounts receivable & capital

Goods sold on credit adds to accounts receivable & sales shall increase the capital in the final accounts.

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Which of the following accounts will be used in equation, if the goods are sold on credit to Mr. Mahmood?

The correct option is C Accounts receivable & capital Goods sold on credit adds to accounts receivable & sales shall increase the capital in the final accounts.

The correct option is C
Accounts receivable & capital

Goods sold on credit adds to accounts receivable & sales shall increase the capital in the final accounts.