Raj is both a customer of and a supplier to Balbir.
Raj’s account in Balbir’s sales ledger showed a debit balance of $300. There was a credit balance of $100 on Raj’s account in Balbir’s purchases ledger. A contra entry between the two accounts was agreed.
Which entry would Balbir make in his purchases ledger control account?
1 )
credit $100
2 )
credit $200
debit $100
4 )
debit $200
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