cash sale to Rahim ₹16000
Answers
Answer:
Journal entry
Cash a/c Dr 16000
to Sale a/c 16000
=> Name of the buyer is only mentioned in case of credit sale.
Rahim a/c is not debited because if he pays cash for goods and when his account id debited he will become debtor for firm but he is not debtor as he paid cash immediately .
hey mate,
your question.
cash sale to Rahim ₹16000
Explanation:— This is based upon golden rule of account :
Rahim's a/c is debited because he is debtor of the firm. He receives goods so he is the receiver.Rahim is the natural personal account so that in such case debit is the receiver rule applies.
Sale account is credited because goods goes out of the firm and after sale of goods firm receive income and all incomes of the firm are to be credited so that sales account is credited.