CIMA BA3 · Chapter 3 · Question 5 of 10
A credit customer pays the amount owed by bank transfer. What is the double entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit Bank, Credit Receivables
Explanation
Cash received increases the bank balance (debit bank) and settles the customer's debt, reducing receivables (credit receivables). The sale was already recorded when the credit invoice was issued, so the sales account is not affected again.
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