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Mention whether the account “Cash” will be credited or debited, when a company pays a bill?
Thanks for inviting:
Cash will be credited.
The rule of real account applies
Dr. what comes in
Cr. What goes out.
Cash account will be credited
Thanks for your invitation; Cash account will be credited when pay your supplier and cash account will be debited when you received collection from your clients/customers.
it will be
creditasset increase become debit
asset decrease become credit
--when we get money in ,it's debit, so when we pay it's credit
The account “Cash” will be credited when a company pays a bill.
As the cash balance will decrease So the cash will credit
The journal entry for the question is
Expense a/c Dr
To Cash a/c
Cash is credited
when a company pays a bill Cash account will be credited.
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