Question

State the rules to identify cash and credit transcations

Answer 1

Answer:

Its pretty easy.

Explanation:

Example - Goods sold to Ram.

Its an credit transaction as it dosen't mention whether it was cash or not.

Example - Goods sold to Shyam in Cash.

Its cash transation as it has mentioned it has cash.

Example - Goods purchased from Kattapa.

Here, its an credit transaction as it dosnen't mention cash.

Example - Goods purchased from Bahubali in Cash.

Its cash transaction as it has mentioned cash.

So if we draw a summary, here is what you need to remember,

If cash mentioned - cash transaction.

If credit mentioned - credit transaction.

If nothing is given (whether its cash or credit), then always assume it to be credit transaction.

Thank you :)

Answer 2

Answer:

I HOPE THIS HELPS YOU........