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The answer is in your question actually. If you received cash on account the asset of CASH will increase, while the asset of Account Receivable will decrease.
Since you received cash it is assumed that they paid you cash on a balance that they owed you, so the journal entry would be a debit to cash (increase) and a credit to accounts receivable (decrease)
What else can I help you with?
What is the account affected when rent received?
When rent is received, the account affected is typically the Cash or Bank account, which increases as cash is received. Simultaneously, the Rent Income account is credited to recognize the revenue earned from renting property. This transaction reflects an increase in assets (cash) and an increase in equity (through income).
When can we say that cash is debit?
Cash can be considered a debit when it is recorded on the left side of a ledger account in accounting, reflecting an increase in assets. For example, when cash is received from a sale or a loan, it is debited to the cash account. This entry increases the cash balance, aligning with the accounting equation where assets must equal liabilities plus equity. In summary, cash is a debit when it signifies an inflow or increase in the company's assets.
When cash is received from sales which account is listed on the first line of the entry?
When cash is received from sales, the account listed on the first line of the journal entry is typically the "Cash" account. This account is debited to reflect the increase in cash assets. The corresponding credit entry usually goes to the "Sales Revenue" account, recognizing the income earned from the sale.
When an owner deposits cash in an account in the name of the business it is an increase to?
When an owner deposits cash in the bank account of his business, the bank account (assets) will increase in his books and payable account (Liabilities) will increase in the books of the bank.
What will be debited if business purchased Vehicle on cash?
When a business purchases a vehicle with cash, the asset account "Vehicles" will be debited to reflect the increase in assets. Simultaneously, the cash account will be credited to show the decrease in cash available. This transaction results in an increase in the company's assets while reducing its cash balance.
When an account receivable is collected in cash the total assets of the business increase?
the increase side of an account is also the side of the normal balance
Why do accounts payable provide a source of cash?
Account payable are a source of cash because when you increase your account payables, you are given credit on the assets you bought, which represent cash.
Shares issued for cash increase assets?
Yes share issue increase current assets as we received cash against share issuance and the general entry is: [Debit] Cash xxxxx [Credit] Share Capital xxxx
If you own a company and you give the company cash and equipment in exchange for common stock how is that listed on the companies spreadsheet?
In a cash-for-equity situation: * Increase the cash account by the amount of cash given * Increase the paid in capital account by the amount of cash given In an equipment-for-equity situation: * Increase the fixed assets account by the net value of the equipment (after depreciation to date) * increase the paid in capital account by the net value of the equipment
When an accounts receivable is collected in cash the total assets of the business increase?
the increase side of an account is also the side of the normal balance
What are the effects on the accounting equation from the purchase of a short-term investment?
The purchase of a short-term investment typically results in an increase in assets (cash decreases, and the investment account increases). The accounting equation remains balanced as the decrease in cash is offset by the increase in the investment account, maintaining the equality of assets, liabilities, and equity.
Why can't all the balance of payments accounts be in surplus?
The balance of payments accounts cannot be in surplus because there is always a balance in economics. For example, if you used cash assets to purchase equipment, the equipment account will increase but the cash assets account will decrease.
