05 October 2013
as per icai both purchases and sales are real a/c ;then : which of the following item is an asset: a)salary paid to manager b)accounts payable c)sales d)debtors
answer is debtors but also sales can be the answer as per the icai's statement of sales a/c being a real a/c..... please explai!
06 October 2013
Debit debtors account with value of sales (increasing a current asset) Credit sales account with total amount (increasing income) Choose credit sales journal if this stock is then on-sold to customers who will pay later. The people/organizations here are known as debtors. Collectively, all these accounts that are to be paid to us by our customers are known as assets.
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