Question

Recieved cash from hari

Answer 1

So the current transaction affects two accounts...

,cash account(amount is received in the form of Cash)

Hari account is a Personal account (as the name suggests)and he is paying us..

cash account is a real account.(cash balance is an asset ; all assets and Liabilities come under Real account)

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

cash accounts are to be debited..(expense ; money is comingin)

Hari account should be credited (hari is giving/the giver)

So the Journal Entry will be...

cash a/c Dr ××××××


To Hari a/c. ×××××

(Being cash received from Hari)

Answer 2

Answer:

Cash A/c Dr.  XXX

      To Hari           XXX

(Being Cash received from Hari)

Explanation:

• Cash is frequently received by the business in the following circumstances:

1. Receipt of cash payment from a debtor
2. A cash sale of goods by the business.
3. Cash withdrawal from the bank
4. Money received from other sources.
5. Additional capital provided by the partner, and so on.

• It is important to note that cash received in any of the scenarios described above is always debited in the books of accounts because it is an asset for the business.

• The Golden Rules of Accounting are -

1. For Personal Accounts-Debit the receiver and credit the giver.
2. For Real Accounts-Debit what comes in and credit what goes out.
3. For Nominal Accounts-Debit expenses and losses, credit income and gains.

• Cash is a Real Account, therefore by applying Rule 2 we will debit the Cash Account.
• Hari is a Personal Account, therefore by applying Rule 1 we will credit the Hari account.

Hence, we can conclude that the Cash Account will be debited with the amount received while the Hari Account will be credited with the same amount.

#SPJ2