14.1.2 Recording collections from debtors Flashcards
1
Q
What is the double entry when the debtor pays the business?
A
Dr Cash at bank or cash in hand (increase asset)
Cr Trade receivables (decrease asset)
2
Q
What is the double entry when a business gives cash discount to the debtor?
A
Dr Cash at bank or cash in hand (increase asset)
Dr Discount allowed (increase expense)
Cr Trade receivables (decrease asset)
3
Q
What is the double / journal entry when a cheque received from a debtor is dishonoured and if cash discount was previously given?
A
Dr Trade Receivables (increase asset)
Cr Cash at Bank (decrease asset)
Cr Discount allowed (decrease expense)
4
Q
Where are the individual trade receivable accounts maintained?
A
In the Sales Ledger.
5
Q
Where is the trade receivables control account kept?
A
In the General Ledger.
