orlando19882000
orlando19882000 orlando19882000
  • 23-09-2017
  • Business
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Which statement about the rules of debit and credit is true

Which statement about the rules of debit and credit is true class=

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Aliwohaish12
Aliwohaish12 Aliwohaish12
  • 23-09-2017
Accounts payable is categorized under current liabilities which its natural balance is credit
For example
if the account has a previous balance of 800 in the balance sheet then you purchased products for 200 on credit the transaction in the journal entry would be
Debit to purchase 200
Credit to accounts payable 200
After this transaction the amount of 200 would be added to the previous balance of 800
Accounts payable=800+200=1000 remains in the credit balance

So the answer is b

Hope it helps!

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