PRC-1 · Chapter 2 · Question 79 of 100
'Delta Construction' uses a two-column cash book. A debtor pays a Rs. 100,000 balance using a bank transfer. How is this recorded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Bank column, Credit Receivables
Explanation
The bank transfer increases the company's bank balance, so it is entered on the receipt (Debit) side in the Bank column. It reduces the customer's debt (Credit Receivables).
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