Question

What is the journal entry of cash paid to sudhir

Answer 1

Sudhir A/C Dr
To Cash A/C
(Cash paid to Sushir)


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Answer 2

Sudhir A/c…Dr

To Cash A/c

Explantion:

According to the golden rule of accounting when assets are increased, they should be debited and when they reduce, it must be credited. Here, we're paying Sudhir money or cash, which is a current asset.

Since, we cash if going out we are crediting cash and since we are paying Sudhir, we credit Sudhir's account because of the account rule which says that we should credit all incomes, therefore the money is an income for Sudhir, so we credit it to him.

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