Question

What is the journal entry for this question ??

sold goods to Mr rai and company

Answer 1

Since Cash is mentioned,

the answer is:

Cash goods …… dr (Real Account; debit what comes in, credit what goes out)

To mr rai goods

(Being goods sold to mr raiin cash)

If cash was not mentioned, we would be selling on credit. So, it would have been:

mr rai goods …….. dr (personal account; debit the receiver, credit the giver)

To Sales goods(Nominal Account)

(Being goods sold to mr rai on credit)

Thanks :)