purchased machinery from kandhan bros,Trichy for Rs.30,000 on which they paid Rs.300 freight on my behalf.
Answers
Answered by
0
Answer:
assume that the payment you made on behalf of Ram is recoverable from him at a future time..
With this assumption,
RAM is now your debtor who owes you money. Hence, the debtor's asset account should be debited to provide for the increase in receivables.
You have paid cash for the freight. This implies that your cash balance is being reduced. Decrease in the value of cash in hand should be accounted by crediting the Cash A/c..
Hence,
RAM A/c Dr.
Similar questions