Register now or log in to join your professional community.
a. Debit sales, credit Wy Ltd £3000. b. Debit Wy Ltd, credit sales £3000. c. Debit cash, credit sales £3000. d. Debit Wy Ltd, credit stock £3000.
the answer is second choice b. Debit Wy Ltd, credit sales £3000
This a case of Credit Sales with a promise to pay the sales consideration on a future date by WY Ltd. Hence he becomes Debtors or Account Receivable. WY Ltd account is to be Debited as he is a debtor and Sales account is to be credited as per the basic principles of accounting With3000 Pounds.
Option B) Debit Wy Ltd and Credit Sale
B
Option b.
b.
Debit Wy Ltd, credit sales £3000.
Answer is B for sure. This transaction will result in an increase of accounts receivable Wy Ltd. (debit) and an increase in sales (credit).
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.