Question

journal entry for:-
Ram who owed ús Rs 40,000 settled his account in cash.​

Answer 1

Answer:

Cash A/c    Dr  40000

    To Ram A/c     40000

Explanation:

Ram is a debtor and thus when a debtor pays back, his account is credited with the same amount. The rule says that Dr the receiver and Cr the giver.

Here Ram is the giver thus he is credited.

Cash is coming in the business through thus pay back and thus id debited.The rule says Dr what comes in.