Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 1)
If a business receives a direct credit from a customer for goods, what would be recorded in the cash book?
A debit in the cash column.
A credit in the cash column.
A debit in the bank column.
A credit in the bank column.
Explanation
Direct credits increase the business's bank balance, representing an inflow, and are thus recorded on the debit side of the bank column.
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