Question

journalising the following transaction- sold goods to chetan ₹20000 ​

Answer 1

Answer:

Chetan's A/c - Dr 20,000

    To Sales A/c     20,000

Explanation:

Since it is not mentioned that the transaction is a cash transaction or credit transaction, we'll assume it to be a credit transaction.

When we sell goods, Chetan becomes our debtor, an asset, so his account is debited by Rs. 20,000.

Also, since sales is an income for the business, and we know that income has credit balance, we credit sales account by Rs. 20,000.