Question

Sold goods to ramesh on credit journal entry

Answer 1

Ramesh A/C Dr...

To Sales A/C

(Being the goods sold to Ramesh on credit)

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Explanation:

Answer 2

Journal Entries in the books of seller

Ramesh A/C DR

             To Sales A/C

( Being goods sold on credit )

NOTE - As we are selling goods on credit so cash is not coming but Ramesh is now our asset which will pay his amount in future so we will debit ramesh account and credit sales as it is alos our asset but is decreasing so it will be credited.

Journal Entries in the books of purchaser

Purchase A/C DR

            To Seller A/C

( Being goods purchased on credit )

NOTE - As we are purchasing goods so it will be debited as it is increasing and we are creating liability as we have  to pay in future so it will be credited.