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Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 sunset tours has a rs.3,500 account receivable from mohan. On Jan 20, the rotary makes a partial payment of rs. 2,100 to sunset tours the journal entry made on jan 20 by sunset tours to record this transaction includes:
a) A credit to cash received A/c of rs. 2,100
b) A credit to accounts receivable A/c 2,100
c) A debit to cash A/c of rs. 1400
d) A debit to accounts receivable A/c 1,400

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 pls explain

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 November 2013 please select B.

Since the sunset tours has Rs 3500 receivable, it has a debit balance (receivable) in its position. Once it receives Rs 2100, it needs to reduce the receivable amounts. So to reduce that balance, you need to credit account receivable by Rs 2100.

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2013 thank yo sir

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