Question

What happen when goods sold for cash at 10% profit rs.15000?

Answer 1

The three golden rules of accounting are

Personal account - Debit The Reciever, credit the giver

Real account - Debit what comes in credit , what goes out

Nominal account - Debit all expenses and losses, credit all incomes and Gains

The journal entry is:


It is given that goods worth 15000 are sold at 10% profit...15000 + 1500=16500. Basing on second and third golden rule...cash being a real account on incoming/increasing should be debited.i increase in asset should be debited to that extent...and sales being nominal account.. Basing on the third golden rule of accounting, sales being income/gain should be credited


cash a/c. Dr. 16500

To Sales a/c. 16500

(Being sales made on cash)

Answer 2

for example u have a car 
nd buy 2000$ but after two months u wll sold your car on 2100 $ the 100$ is an ur profit and add on ur cash 
 
cash a/cc dr. 16500
 to profit                  1500
 to sales                   15000