Question

Dec 10-Received a total of P55,000 cash for laundry services rendered.give the journal entry.(Example:debit-cash 100,000, credit-capital-100,000)
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Answer 1

Answer:

Cash a/c (Dr) 55,000

Laundry Services (Cr) 55,000

Explanation:

Since the transaction is made for Cash, receivable is not created and directly recognized under Income.

Cash inflow to the company, therefore debited.

Revenue is a nominal account where all income accounts are Credited as per the Golden rules of accounting.