Commerce Exam > Commerce Questions > Sunset Tours has a Rs. 3,500 account receivab...
Start Learning for Free
Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:
- a)A credit to the received account of Rs. 2,100.
- b)A credit to the Account receivable account of Rs. 2,100.
- c)A debit to the cash account of Rs. 1,400.
- d)A debit to the Account receivable account of Rs. 1,400.
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January...
Cash account is Dr by 2100 and account recievebale account is credited because. cash is inc and debtors is decreased and when decrease in asset we credit that account
Free Test
FREE
| Start Free Test |
Community Answer
Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January...
Journal entry to record partial payment by the Rotary to Sunset Tours
When the Rotary makes a partial payment of Rs. 2100 to Sunset Tours for the Rs. 3,500 account receivable from Mohan, the following journal entry is made on January 20 by Sunset Tours to record this transaction:
Received Account Dr. Rs. 2,100
Account Receivable (Mohan) Cr. Rs. 2,100
Explanation:
- Received Account is a contra account to the Accounts Receivable account. It is used to record the amounts received from customers.
- When a partial payment is made, the amount received is debited to the Received Account and credited to the Accounts Receivable account. This reduces the balance in the Accounts Receivable account and reflects the amount that is still due from the customer.
- In this case, the Rotary made a partial payment of Rs. 2100 towards the account receivable of Rs. 3,500 from Mohan. Hence, the Received Account is debited by Rs. 2,100 and the Account Receivable (Mohan) is credited by Rs. 2,100.
- The cash account is not involved in this transaction as the Rotary has not paid the full amount. Hence, options (c) and (d) are incorrect.
- The Account Receivable account is credited only when the full payment is received. Hence, option (a) is also incorrect.
Therefore, the correct answer is option (b), i.e., a credit to the Received Account of Rs. 2,100.
When the Rotary makes a partial payment of Rs. 2100 to Sunset Tours for the Rs. 3,500 account receivable from Mohan, the following journal entry is made on January 20 by Sunset Tours to record this transaction:
Received Account Dr. Rs. 2,100
Account Receivable (Mohan) Cr. Rs. 2,100
Explanation:
- Received Account is a contra account to the Accounts Receivable account. It is used to record the amounts received from customers.
- When a partial payment is made, the amount received is debited to the Received Account and credited to the Accounts Receivable account. This reduces the balance in the Accounts Receivable account and reflects the amount that is still due from the customer.
- In this case, the Rotary made a partial payment of Rs. 2100 towards the account receivable of Rs. 3,500 from Mohan. Hence, the Received Account is debited by Rs. 2,100 and the Account Receivable (Mohan) is credited by Rs. 2,100.
- The cash account is not involved in this transaction as the Rotary has not paid the full amount. Hence, options (c) and (d) are incorrect.
- The Account Receivable account is credited only when the full payment is received. Hence, option (a) is also incorrect.
Therefore, the correct answer is option (b), i.e., a credit to the Received Account of Rs. 2,100.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer?
Question Description
Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer?.
Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A credit to the received account of Rs. 2,100.b)A credit to the Account receivable account of Rs. 2,100.c)A debit to the cash account of Rs. 1,400.d)A debit to the Account receivable account of Rs. 1,400.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup