What will be the journal entry of sold goods to Ram on credit?

Answer Expert Verified Ram is the Receiver of goods, as such, his personal account has been debited According to the rule of personal account, i.e., “Debit the Receiver”. Sales A/c will be credited according to the rule of Nominal account i.e., “Credit all incomes”.

What is the journal entry for purchase goods on credit?

How to Record Journal Entry of Purchase Credit? The company pays cash against goods purchased on credit to the vendor. Thus the Accounts payable account debits as the liability gets settled with the corresponding credit to the cash accounts as there is the outflow of the cash to the vendor.

When goods are sold on credit which account is credited?

When goods are sold on credit, Sales account is credited.

What is the entry of credit sale?

In the case of credit sales, the respective “debtor’s account” is debited, whereas “sales account” is credited with the equal amount….Journal Entry for Credit Sales.

What is a credit journal entry?

A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry.

What is the journal entry of received Cheque for goods sold?

(being goods sold and cheque received). u may get a doubt when we receive cheque then bank a/c should debit then why this person is debited the cash a/c it’s because cheque is not deposited in the bank .

What is the journal entry of sale of old machinery?

Debit cash for the amount of cash received, credit machinery for the total balance of that particular piece of machinery (consult your depreciation schedule), debit accumulated depreciation for the full amount of depreciation taken on the machinery and the balance (could be a debit or a credit) would go to Gain/loss on …