Chianti Limited sells new plant and equipment that it has produced to a customer for £250,000. The customer has agreed to pay the £250,000 due in 60 days' time. Which one of the following is the correct double entry to record this transaction in Chianti Limited's books of account?
A) Debit trade receivables £250,000, Credit property, plant and equipment £250,000
B) Debit trade receivables £250,000, Credit sales £250,000
C) Debit cash £250,000, Credit sales £250,000
D) Debit cash £250,000, Credit property, plant and equipment £250,000
Correct Answer:
Verified
Q16: Debit irrecoverable debts, Credit trade receivables is
Q17: Puffins Limited takes out a bank loan
Q18: Barolo Limited receives a statement from the
Q19: Frascati Limited buys a new van with
Q20: Which one of the following is the
Q22: Panos invested £10,000 into a small retail
Q23: Cheapo Supermarkets makes a payment of £9,570
Q24: Arvind is setting up his own business.
Q25: Debit purchases, Credit trade payables is the
Q26: Which one of the following is the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents