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Payment by draft to a creditor. what will be the journal entry and why? . reply asap pls |
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Answer» Answer: When we need to pay that account, we need to debit accounts payable, and credit cash. CREDITOR are the RECEIVER so as per rule creditors will be debit and payment is done by COMPANY so cash / bank account is CREDITED as RULES “ credit what goes out . Real account and personal account.
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