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Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:
- a)A Credit to the cash received a/c of Rs.50,000
- b)A Credit to the account receivable account of Rs.50,000
- c)A Debit to the cash account of Rs.20,000
- d)A Debit to the accounts receivable account of Rs.20,000
Correct answer is option 'B'. Can you explain this answer?
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Sunset Tours has a Rs.70,000 account receivable from Mohan. On January...
Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes A Credit to the account receivable account of Rs.50,000.
So, the answer is :-
[B] A Credit to the account receivable account of Rs.50,000
Most Upvoted Answer
Sunset Tours has a Rs.70,000 account receivable from Mohan. On January...
Explanation:
This question is based on the accounting treatment of partial payment of accounts receivable. Let's understand the journal entry made by Sunset Tours to record this transaction.
Journal Entry:
Accounts Receivable A/C Dr. Rs. 50,000
To Cash A/C Rs. 50,000
Explanation of the Journal Entry:
1. Debit to Accounts Receivable A/C:
When Mohan makes a partial payment of Rs. 50,000, the accounts receivable balance of Sunset Tours decreases by the same amount. Therefore, a debit entry is made to the accounts receivable account.
2. Credit to Cash A/C:
The partial payment made by Mohan is received in the form of cash. Hence, a credit entry is made to the cash account to record the receipt of cash.
Therefore, the correct answer is option 'B' i.e., a credit to the accounts receivable account of Rs. 50,000.
Summary:
When a customer makes a partial payment of accounts receivable, the accounts receivable balance decreases, and the cash balance increases. Hence, a debit entry is made to the accounts receivable account, and a credit entry is made to the cash account.
This question is based on the accounting treatment of partial payment of accounts receivable. Let's understand the journal entry made by Sunset Tours to record this transaction.
Journal Entry:
Accounts Receivable A/C Dr. Rs. 50,000
To Cash A/C Rs. 50,000
Explanation of the Journal Entry:
1. Debit to Accounts Receivable A/C:
When Mohan makes a partial payment of Rs. 50,000, the accounts receivable balance of Sunset Tours decreases by the same amount. Therefore, a debit entry is made to the accounts receivable account.
2. Credit to Cash A/C:
The partial payment made by Mohan is received in the form of cash. Hence, a credit entry is made to the cash account to record the receipt of cash.
Therefore, the correct answer is option 'B' i.e., a credit to the accounts receivable account of Rs. 50,000.
Summary:
When a customer makes a partial payment of accounts receivable, the accounts receivable balance decreases, and the cash balance increases. Hence, a debit entry is made to the accounts receivable account, and a credit entry is made to the cash account.
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Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer?
Question Description
Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer?.
Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct 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.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct 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.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:a)A Credit to the cash received a/c of Rs.50,000b)A Credit to the account receivable account of Rs.50,000c)A Debit to the cash account of Rs.20,000d)A Debit to the accounts receivable account of Rs.20,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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