Question

sold goods to mohan on cash
Journal entry

Answer 1

Cash A/c or Mohan ....Dr.
To Sales A/c

Answer 2

Jounal Entries in the books of seller

Cash A/C DR

         To Sales A/C

( Being goods sold )

As goods is sold for cash and cash is our asset so it is increasing because mohan is giving us cash so it will increase and cash a/c will be debited.

We are selling goods which is also our asset and it is decreasing because we are giving it to mohan and mohan is paying for it , so goods are decrasing and goods a/c or sales a/c  will be credited.

Journal Entries in the books of buyer

Purchase A/C DR

             To Cash A/C

( Being goods purchased )

As we are purchasing and it is our asset and it is increasing so it will be debited i.e. purchase a/c will be debited.

Cash A/C will be credited as it is also one of our asset and it is decreasing because we are paying for the purchase and cash a/c will be credited.