Question

Collected from Tyagi rupees 40000 in cash and deposited into bank on the same day

Answer 1

Answer:

Explanation:

The transaction can be treated in two ways depending on its condition

1 if the cash proceeds received before deposited to the bank

Debit Cash Account and credit sales Account

Debit Bank Account and Credit Cash Account

2 if the proceeds is deposited directly to the bank

Debit Bank Account and Credit Sales Account

the 2nd method will hold since the money is directly paid to the Bank and the cash account is not in any means affected