Goods sold to shenoy
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Given"Goods Sold to shenoy "
This transaction affects 2 accounts... Sales a/c (we are selling Goods) , Shenoy a/c (Goods are Sold to shenoy on credit )
Where Sales a/c is a nominal account (all incomes gains losses expenses come under it).. Shenoy a/c is a personal a/c..
The Three golden rules of accounting are
Personal account - Debit the receiver, credit the giver
Real account- Debit what comes in , credit what goes out
Nominal account - Debit All expenses and losses,credit All incomes and gains..
As per the above rules , Sales is an income so should be credited and Shenoy is reciever so should be Debited ited to that extent....
The Journal Entry will be
Shenoy a/c Dr 230000
To Sales
(Being Goods Sold to shenoy)
This transaction affects 2 accounts... Sales a/c (we are selling Goods) , Shenoy a/c (Goods are Sold to shenoy on credit )
Where Sales a/c is a nominal account (all incomes gains losses expenses come under it).. Shenoy a/c is a personal a/c..
The Three golden rules of accounting are
Personal account - Debit the receiver, credit the giver
Real account- Debit what comes in , credit what goes out
Nominal account - Debit All expenses and losses,credit All incomes and gains..
As per the above rules , Sales is an income so should be credited and Shenoy is reciever so should be Debited ited to that extent....
The Journal Entry will be
Shenoy a/c Dr 230000
To Sales
(Being Goods Sold to shenoy)
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