BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Furniture A/C (Debit)-To Cash A/C (Credit)
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Cash A/C (Debit)-To Furniture A/C (Credit)
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Cash A/c (Debit)-To Sales A/c(Credit)
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Sales A/c (Debit)-To Furniture A/c(Credit)
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Detailed explanation-1: -In this transaction, we have to debit what comes in and credit what goes out i.e. here cash comes in, and furniture goes out. Hence this transaction is recorded in cash book.
Detailed explanation-2: -You debit your furniture account, because value is flowing into it (a desk). In double-entry accounting, every debit (inflow) always has a corresponding credit (outflow). So we record them together in one entry.
Detailed explanation-3: -In the case of a cash sale, the entry is: [debit] Cash. Cash is increased, since the customer pays in cash at the point of sale.
Detailed explanation-4: -What is a sales journal entry? A sales journal entry records a cash or credit sale to a customer. It does more than record the total money a business receives from the transaction. Sales journal entries should also reflect changes to accounts such as Cost of Goods Sold, Inventory, and Sales Tax Payable accounts.