What is the journal entry for machinery sold to laxmi entreprices 50000
Answers
Answered by
2
Given "Machinery Sold to laxmi enterprises 50000"
This transaction affects two accounts sales a/c , laxmi enterprises a/c..where Purchases is a nominal account(all expenses incomes gains losses come under nominal account) , laxmi enterprises a/c is a Personal account ..
The Three golden rules of accounting are
Personal account - Debit the receiver , 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
As Per the above rules..since Sales is an income should be credited and laxmi enterprises being the receiver should be debited....
The Journal Entry will be..
Laxmi enterprises a/c. Dr. 50000
To sales a/c 50000
(Being Goods Sold to laxmi enterprises)
This transaction affects two accounts sales a/c , laxmi enterprises a/c..where Purchases is a nominal account(all expenses incomes gains losses come under nominal account) , laxmi enterprises a/c is a Personal account ..
The Three golden rules of accounting are
Personal account - Debit the receiver , 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
As Per the above rules..since Sales is an income should be credited and laxmi enterprises being the receiver should be debited....
The Journal Entry will be..
Laxmi enterprises a/c. Dr. 50000
To sales a/c 50000
(Being Goods Sold to laxmi enterprises)
Similar questions