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Can someone explain to me how a receivables account can end up with a closing balance aswell as an opening balance?
I came across such a Receivables account while looking through the “Control Account” section of the BPP study text book. (p242)Thank you
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Hi,
Mate receivables are the assets of a business. These are peeps or business who Owes money resulting from credit purchases. This account of receivable will have a debit opening n closing balance in records.
Example: a buys some stuff from b for 400 quid on credit. B in his receivable ledger will record this entry as following
Dr receivables £400
Cr sales £400
Hope this helpHello
Tanks… But After having reread my question, this wasn’t what I initially had difficulties with. What I meant to write was. How can a receivables account have an open credit and closing credit …… But I understood why. If a customer returns a good out of the ten he bought (on credit), that good will be input on the credit side of the receivables account.
Thanks anyways joney
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