journal entry for 'ram who owed us RS 40000 settled his account in cash
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Answer:
Cash A/c Dr 40000
To Ram A/c 40000
Explanation:
Whenever a debtor pays back his due amount we have to enter it in books by crediting the same account from the debtor. Thus Ram A/c is credited.
Cash coming in the business is an asset and thus is debited because Dr what comes in.
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