According to personal account rule when is lender account credited?

Correct answer: When amount payable by firm increases

Direct answer: Option A, when the amount payable by the firm increases. In a personal account, the rule is: debit the receiver, credit the giver. Here, the lender has given money to the firm, so the lender is treated as the giver. The firm owes this person, and an increase in this obligation is recorded by crediting the lender’s account. Therefore, the credit balance or payable amount rises. Option A is correct because a higher liability means a higher credit. Option B is not the answer to this question: when the firm pays, the liability usually decreases, so the lender’s account is debited and cash is credited. Option C is unrelated because a fall in sales does not itself decide the lender’s account. Option D is also unrelated; purchasing goods affects purchases, cash, or creditors, not automatically this loan account. Remember: money received as a loan creates a credit to the lender; repayment reverses it.