Sold good to anil Rd.1000(cash)
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This transaction affects two accounts sales account (Goods are Sold to anil) and cash account (cash is received against sales)..Sales account is a nominal account (All expenses losses Gains income come under it).. Cash account is a Real account (all assets and Liabilities come under it)
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
In contention with the above rules.
Sales is an income so it should be credited and cash is coming in so It should be debited..
The Journal Entry will be..
Cash a/c Dr 1000
To sales a/c 1000
(Being Goods Sold for cash)
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
In contention with the above rules.
Sales is an income so it should be credited and cash is coming in so It should be debited..
The Journal Entry will be..
Cash a/c Dr 1000
To sales a/c 1000
(Being Goods Sold for cash)
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