Question

What is the journal entry for cash sales paid into bank?

Answer 1

Bank a/c Dr.

To sales a/c

(being cash sales paid to bank)

Answer 2

Bank A/c Dr.

To sales A/c

Explanation:

As given in the question, payment is made in full to sales account therefore the given entry would be correct. As current asset is reducing, i.e. cash is reducing, according to the accounting rule, ‘debit the receiver, credit the giver’, we should credit as it’s reducing.

As sales account is being paid that money in full, we are crediting the account. This is a very simple and basic transaction where cash is being transferred to Mohan’s account that is Mohan’s Capital account.

Learn more about journal entry  

Sold goods to ram for journal entries  

brainly.in/question/1718750  

Brought furniture from S.R furnisher against cash journal entry  

brainly.in/question/4697057