Question

Sold goods to Krishna on credit 500

Answer 1

JOURNAL ENTRY - -

Krishna dr. 500

To sales a/c 500

( being goods sold on credit )

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 A/c - Nominal A/c ,its a income of the company , therefore its credited

Krishna A/c - personal A/c , Krishna is a buyer who receivers goods , hence its debited

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Journal Entry

Krishna A/c Dr 500

To sales A/c 500

(being credit sales made to krishna )

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* No GST added