Accounts receivable is the revenue to a business organization or a company.
Accounts receivable mostly occur in the credit transactions. When the credit transaction occurs accounts receivable will be debited and the concerned sales account will be credited.
Accounts receivable also occurs when there is an advance payment for supply of goods to the seller. When the advance payment is made for any purchases by a company or a business organization accounts receivable account will be debited.
This amount will be adjusted while making the full payment for the purchases. The concerned purchase account will be debited and the accounts receivable account will be credited and adjusted for the advance amount already paid.
The format of accounts receivable account is as follows.
1,Date of transaction.
2,Demand(Amount to be received)
3,Collection(Amount collected for the due)
4,Date of collection.
5,Number of days for settlement
6,% of interest for the delay
7,Interest to be received
8,Balance amount to be received.
Accounts receivable mostly occur in the credit transactions. When the credit transaction occurs accounts receivable will be debited and the concerned sales account will be credited.
Accounts receivable also occurs when there is an advance payment for supply of goods to the seller. When the advance payment is made for any purchases by a company or a business organization accounts receivable account will be debited.
This amount will be adjusted while making the full payment for the purchases. The concerned purchase account will be debited and the accounts receivable account will be credited and adjusted for the advance amount already paid.
The format of accounts receivable account is as follows.
1,Date of transaction.
2,Demand(Amount to be received)
3,Collection(Amount collected for the due)
4,Date of collection.
5,Number of days for settlement
6,% of interest for the delay
7,Interest to be received
8,Balance amount to be received.
