Question

Goods sold for credit to rahim

Answer 1

hey mate


here is your answer :-


Journal is a record that keeps accounting transactions in chronological order, i.e. as they occur.

In a simple journal entry , two accounts are involved one of which is Debited and the other is Credited.

Before recording a journal entry, it is important to understand the NATURE OF ACCOUNTS involved in the journal entry.

We know there are three types of accounts-

Real account - All assets of a firm, which are tangible or intangible, fall under the category “Real Accounts“. Golden rule for real accounts is “Debit what comes in ,Credit what goes out”Personal account - These accounts are related to individuals, firms, companies, etc. Golden rule for personal accounts is “Debit the receiver,Credit the giver”Nominal account - Accounts which are related to expenses, losses, incomes or gains are called Nominal accounts.Golden rule for nominal accounts is “Debit all expenses & losses, Credit all incomes & gains”

Now, a journal entry for cash sales involves two accounts

Cash a\c , which is a real account as it is a current asset.Sales a\c, which is a nominal account as sale is a type of income.


I hope it helps you

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