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a. Debit sales, credit Wy Ltd £3000. b. Debit Wy Ltd, credit sales £3000. c. Debit cash, credit sales £3000. d. Debit Wy Ltd, credit stock £3000.
the answer is second choice b. Debit Wy Ltd, credit sales £3000
This a case of Credit Sales with a promise to pay the sales consideration on a future date by WY Ltd. Hence he becomes Debtors or Account Receivable. WY Ltd account is to be Debited as he is a debtor and Sales account is to be credited as per the basic principles of accounting With3000 Pounds.
Option B) Debit Wy Ltd and Credit Sale
B
b.
Debit Wy Ltd, credit sales £3000.
Answer is B for sure. This transaction will result in an increase of accounts receivable Wy Ltd. (debit) and an increase in sales (credit).
