BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sold goods to Sahil for cash 1800, in this transaction sahil’s A/c will be
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debited
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Credited
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Neither debited nor Credited
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None of the above
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Explanation:
Detailed explanation-1: -When goods are sold on credit, debtors which is an asset account is debited as money is receivable from the customers and sales which is a revenue account is credited.
Detailed explanation-2: -Sales of goods on cash involves cash and goods account. Both cash and goods are real account. Rule for real account says” debit what comes in". 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: -Answers. Drawing a/c Dr. To bank a/c cr.
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