Jaswant Limited receives a payment of £15,000 from a trade receivable for goods supplied a month ago. The company's accountant pays this £15,000 into the company's bank account. Jaswant Limited currently has an overdraft at the bank of £50,000 before this receipt of £15,000 is paid in. What is the correct double entry to reflect this transaction?
A) Increase trade receivables £15,000, increase bank overdraft £15,000.
B) Increase trade receivables £15,000, decrease bank overdraft £15,000.
C) Decrease trade receivables £15,000, decrease bank overdraft £15,000.
D) Decrease trade receivables £15,000, increase bank overdraft £15,000.
Correct Answer:
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