Question

8. When an Asset is taken over by a creditor:
will ha recorded​

Answer 1

Answer:

yes.

Explanation:

Since the creditor takes over the asset it acts as a paymemt for the amount which he owes us. And since the Credit is the giver while he gives us cash we will now debit the creditor and credit the asset as it goes out.

i.e

Creditors A/C....Dr

To Asset A/C