Sold Goods Worth 6000 to Ramesh.prepare journal entries
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This transaction affects two accounts
sales account(goods are Sold) and Ramesh account (Sold to him on credit)
the Three golden rules of accounting are
Personal account - Debit the receiver, credit the giver
Nominal account - Debit All expenses and losses, credit All incomes and gains
Real account - Debit what comes in, Credit what goes out
Sales account is a nominal (income) ; it should be credited
Ramesh account is a personal account(reciever) ; it should be debited.
the Journal Entry will be..
Ramesh a/c Dr 6000
To sales a/c. 6000
(Being Goods Sold to Ramesh)
sales account(goods are Sold) and Ramesh account (Sold to him on credit)
the Three golden rules of accounting are
Personal account - Debit the receiver, credit the giver
Nominal account - Debit All expenses and losses, credit All incomes and gains
Real account - Debit what comes in, Credit what goes out
Sales account is a nominal (income) ; it should be credited
Ramesh account is a personal account(reciever) ; it should be debited.
the Journal Entry will be..
Ramesh a/c Dr 6000
To sales a/c. 6000
(Being Goods Sold to Ramesh)
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