Question

Sold goods against chek rupees nine thousand and it was deposited into bank with cash book

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Bank A/c - personal A/c , where banker is the receiver money from supplier therefore its debited

*note- as its paid by cheque we need to account in bank account . i assume cheque deposited in bank immediately on the same day

Sales A/c - nominal A/c, its the income to the company therefore its credited

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Journal entry

Bank A/c   Dr   9000

        To sales A/c           9000

(being sales made )

Answer 2

The Transaction affects two accounts... Sales account (Goods are sold) ... bank account (Cheque recieved and deposited on the same date)

The Three golden rules of accounting are

Personal account - Debit the receiver credit the giver

Nominal account - Debit All expenses and losses, credit All incomes and gains

Real account - Debit what comes in, credit what goes out


sales account is a nominal account..( all expenses losses Gains income come under it; sales is an income)

bank account is a real account ..(all assets and Liabilities come under Real account.. cash is a real account)



in contention with the above rules...The Journal entries will be...

bank a/c Dr 9000

To Sales a/c 9000

(Being Goods Sold )