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Financial statement of company - class-XI
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A has $Rs. 3,500$ due from B. On January $20$, B makes a partial payment of $Rs. 2,100$ to A. The journal entry made on January $20$ by A to record this transaction include_________.
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A
A credit to B's account of $Rs. 2,100$
💡 Explanation:
When B makes a payment to A, A receives cash (debit) and B's debt to A decreases. Decreasing an asset (accounts receivable) requires a credit to B's account.