BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ram account
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Cash account
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Sales account
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Stock account
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Detailed explanation-1: -According to the rule of personal account, a credit sale of goods to ram should be debited to his personal account as Ram is the receiver of goods; as such, his personal account has been debited.
Detailed explanation-2: -Against sale of goods cash is coming in the system, hence cash account should be debited.
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. [debit] Cost of goods sold.
Detailed explanation-4: -Goods sold for cash are an example of revenue.
Detailed explanation-5: -This statement is False. Credit sales of goods are entered in sales journal and cash sales transactions are to be recorded in cash book in the receipt side.