Which of the following is the correct entry for Advance Payments made to Creditors?
a.
Debit Cash/Bank A/c and Credit Creditors A/C b. Debit Creditors A/c and Credit Cash/Bank A/C
d.
Debit Creditors A/c and Credit Liabilities A/C
C.
Debit Assets A/c and Credit Cash/Bank A/C
Answers
Answered by
6
Answer:
opt a is correct.........
Answered by
1
Answer:
The advance payment made to a creditor is Debit Creditors A/c and Credit Cash/Bank A/C.
Explanation:
Ususally when we make a payment to a person whom we have to pay money, we debit. In creditors entry we credit it when we have a liability. So for repayment we debit it to tally it.
The Answer is option b.
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