Banking
Credit Card Purchase — Billed to Cardholder
A cardholder's purchases during the billing cycle are posted to their card account.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Credit Card Receivables | Asset (+) | 350.00 | - |
| Credit Card Commitments (Drawn) | Contingent Liability (-) | 350.00 | - |
💡 Accountant's Note
When a cardholder makes a purchase, the undrawn limit decreases and an on-balance-sheet receivable is created. The bank has funded the merchant through the card scheme settlement.
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