Question

Nature of account whether it's is creditor or debitor
1 Increase in building
2 increase in creditor
3 increase in wage paid
4 decrease in bank overdraft
5 decrease in the amount of debtor
6 decrease in rent outstanding

Answer 1

Answer:

1. Increase in asset ---- to be debited to Building A/C

2. Increase in liability --- to be credited to creditor A/C

3. Increase in Expense ----- to be debited to respective Asset A/C

4. Decrease in liability ----- to be debited

5. Decrease in Asset ---- to be credited to debtors A/C

6. Decrease in liability ---- to be debited to Outstanding Rent A/C