Question

(4)
Which transaction discloses relation of debtor and creditor ?
(a) Goods purchased of * 8000.
(b) Goods of * 8000 purchased from B.
(c) Goods of * 8000 purchased through cheque
(d) Goods destroyed by fire * 8000
it
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Answer 1

I think its (a) or (c)...............

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Answer 2

(b) Goods of 8000 purchased from B

Debtor is the person from whom money is taken or the person who spend a certain amount of money in the transaction.

Creditor is the person who gained from the transaction as he is the one who got the certain amount of money in the transaction.

Here (b) mentions the creditor as B is the person who sold goods worth 8000 rs and by principle who is the creditor.

The transaction goods of 8000 purchased from B accounts to the transaction between debtor and creditor.

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