Question

Sold goods for cash to sudhir Ltd Rs 18000

Answer 1

Cash A/C Dr. 18000

To Sales A/C 18000

Answer 2

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

sales - Nominal A/c - sales is incomes to the company therefore its credited

Cash - Real A/c - cash comes into the business therefore its debited

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Journal entry

Sales A/c Dr 18000

To cash A/c 18000

(being cash sales made )