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When does a debtors account have a credit balance?
goods in transit a debtor(customer) could also be a supplier(creditor)
What does it mean for credit balance of a debtors?
A credit balance of a debtor means that the debtor has paid more than what they owe, resulting in a positive balance on their account. This situation can arise from overpayments, returns, or adjustments. Essentially, it indicates that the creditor may owe the debtor money or that the debtor has a prepaid amount available for future transactions. It reflects a favorable position for the debtor in terms of their financial dealings with the creditor.
State three possible reasons why a debtor's account might have a credit balance?
Overpayment Payment in advance Credit note issued Deposit received
When does accounts receivable have a credit balance?
If an account has a credit balance the customer must have overpaid on their account or a credit was issued by the company and posted to the customers account, resulting in a credit or negative balance.
Why is a capital account has credit balance?
The normal balance in a capital account is a credit. Capital is a balance sheet account. Assets = Liabilities + Capital
When does a debtors account have a credit balance?
goods in transit a debtor(customer) could also be a supplier(creditor)
What does it mean for credit balance of a debtors?
A credit balance of a debtor means that the debtor has paid more than what they owe, resulting in a positive balance on their account. This situation can arise from overpayments, returns, or adjustments. Essentially, it indicates that the creditor may owe the debtor money or that the debtor has a prepaid amount available for future transactions. It reflects a favorable position for the debtor in terms of their financial dealings with the creditor.
State three possible reasons why a debtor's account might have a credit balance?
Overpayment Payment in advance Credit note issued Deposit received
What account is the branch account under debtors system?
branch debtor account is an account prepaid when the branch sell goods or credit. it necessary for recording all transctions concerning branchdebters and for acertaining the balance of debtors at branch
When does accounts receivable have a credit balance?
If an account has a credit balance the customer must have overpaid on their account or a credit was issued by the company and posted to the customers account, resulting in a credit or negative balance.
Why is a capital account has credit balance?
The normal balance in a capital account is a credit. Capital is a balance sheet account. Assets = Liabilities + Capital
Where is posted the debtors?
The debtor is posted on the credit side of the balance sheet.
Is a Credit balance in vendor subsidiary account is an unpaid balance?
Is a credit balance in a vendor subsidiary account an unpaid balance owed?
Is a credit balance in a vendor subsidiary account an unpaid balance owed?
Is a credit balance in a vendor subsidiary account an unpaid balance owed?
Is a credit balance in a vendor subsidiary account is an unpaid balance owed?
Is a credit balance in a vendor subsidiary account an unpaid balance owed?
Is a credit balance in a vendor subsidiary account is an unpaid balance owed.?
Is a credit balance in a vendor subsidiary account an unpaid balance owed?
What is total debtor account?
A total debtor account refers to the aggregate amount owed to a business by all its customers or clients who have purchased goods or services on credit. It represents the outstanding invoices and is an essential component of a company's accounts receivable. Monitoring this account helps businesses manage cash flow and assess the effectiveness of their credit policies. It is typically reflected on the balance sheet as a current asset.
