Receiver's account is known as?
Hi Pratim
Receiver is also known as the creditor of the business.
Remember the rule of 'Personal Accounts', it says, "Debit the receiver and credit the giver".
So, when we make payment to one of our creditors named XYZ, we will pass the following journal entry:
XYZ Dr.
To Cash A/c
Here, XYZ is the receiver as he is receiving the amount from the business. Hence, we can say that the receiver is the creditor of the business or someone to whom business is liable to pay.
Receiver is also known as the creditor of the business.
Remember the rule of 'Personal Accounts', it says, "Debit the receiver and credit the giver".
So, when we make payment to one of our creditors named XYZ, we will pass the following journal entry:
XYZ Dr.
To Cash A/c
Here, XYZ is the receiver as he is receiving the amount from the business. Hence, we can say that the receiver is the creditor of the business or someone to whom business is liable to pay.