sold goods on cash to Ram of rupees 30000 and Shyam of Rs 40,000 and on credit to Mr Rohit of rupees 50000 and Prakash to 40000
Answers
Answer:
or loss made by business and to know the financial soundness of the concern as a whole. In order to achieve the objectives of the firm, it is essential to maintain several books and records. The number of books and records are maintained by an -enterprise for the evidence of the recording business transactions. Cash Receipts, Invoice, Cash Memo, Cheque and other vouchers are the examples of documentary evidence supported for preparation of income statements. According to double entry system of accounting each transaction is recorded in the books of accounts to ascertain the profits earned during a particular period. "Transaction" of a business refers to an event the recognition of which gives rise to an entry in account records. While analyzing the review of accounting cycle, the whole process of accounting consists of the following important stages : (1) Recording the transactions are done through Journals or Subsidiary Books. (2) Classifying the transactions are achieved by Ledger. (3) Summarizing the transactions are done through Trial aalance. (4) The last stage is concerned with preparing Income Statements (Trading, Profit and Loss Account and Balance Sheet). JOURNAL In the first stage of double entry
Answer:
The first step in accounting is journalizing the transactions, so I am providing the journal entry for the same:
Explanation:
For selling goods to Ram on Cash
Cash A/c.............Dr Rs 30,000
To Sales A/c.....Cr Rs 30,000
For selling goods to Shyam on Cash
Cash A/c...........Dr RS 40,000
To Sales A/c.......Cr Rs 40,000
For selling goods to Mr Rohit on credit
Mr Rohit A/c.............Dr Rs 50,000
To Sales A/c........Cr Rs 50,000
For selling goods to Prakash on credit
Prakash A/c.............Dr Rs 40,000
To Sales A/c........Cr Rs 40,000