journal entry for the transaction
Nov 28 2013 10:19 AM
cash a/c dr (increase in Current asset)
to distributor a/c (decrease in current asset)
distributor owe money to xyz co. - current asset. when distributor pays money to xyz co. current asset as in the books of xyz co. comes down, mean while cash other current asset goes up.. and hence asset side of B/S is affected.