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Dishonour of the Bill

A Credit Sale...

Question

A Credit Sale Of Goods To Ram Should Be Debited To (C) Goods Account (D) Purchase Account

A

Ram's Account

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B

Sales Account

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C

Goods Account

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D

Purchase Account

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Solution

The correct option is A
Ram's Account

The correct answer is (A) Ram’s Account
According to the rule of personal account, a credit sale of goods to ram should be debited to his personal account as Ram is the receiver of goods; as such, his personal account has been debited

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Similar questions

Q. Rectify the following errors assuming that Suspense Account was opened. Ascertain the difference in Trial Balance.
(a) Credit sales to Mohan ₹ 7,000 were recorded in Purchase Book. However, Mohan's Account was correctly debited.
(b) Credit purchases from Rohan ₹ 9,000 were recorded in Sales Book. However, Rohan's Account was correctly credited.
(c) Goods returned to Rakesh ₹ 4,000 were recorded in Sale Returns Book. However, Rakesh's Account was correctly debited.
(d) Goods returned from Mahesh ₹ 1,000 were recorded through Purchase Returns Book. However, Mahesh's Account was correctly credited.
(e) Goods returned to Naresh ₹ 2,000 were recorded through Purchases Book. However, Naresh's Account was correctly debited.

Q. Rectify the following errors assuming:-
that such a suspense account has been opened.
1. Goods costing ₹ 800 purchased from Sachin on credit were omitted to be credited to his account.
2. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 80.
3. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 880.
4. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account.
5. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account as ₹ 80.

Rectify the following errors assuming that a suspense account was opened.

Ascertain the difference in trial balance.

(a)	Credit sales to Mohan Rs 7,000 were posted to the credit of his account.
(b)	Credit purchases from Rohan Rs 9,000 were posted to the debit of his account as Rs 6,000.
(c)	Goods returned to Rakesh Rs 4,000 were posted to the credit of his account.
(d)	Goods returned from Mahesh Rs 1,000 were posted to the debit of his account as Rs 2,000.
(e)	Cash sales Rs 2,000 were posted to the debit of sales account as Rs 5,000.

Q. Rectify the following errors:-
1. A sale of goods to Raja Ram for ₹ 2,500 was passed through the Purchases Book.
2. Salary of ₹ 800 paid to Hari Babu was wrongly debited to his personal account.
3. Furniture purchased on credit from Mohan Singh for ₹ 1,000 was entered in the Purchases Book.
4. ₹ 5,000 spent on the extension of buildings was debited to Buildings Repairs Account.
5. Goods returned by Mani Ram ₹ 1,200 were entered in the Returns Outwards Book.

Q. Pass Journal entries to rectify the errors in the following cases:
(i) A purchase of goods from David amounting to ₹ 150 has been wrongly passed through the Sales Book.
(ii) A credit sale of goods of ₹ 120 to Peter has been wrongly passed through the Purchases Book.
(iii) ₹ 200, salary paid to Cashier, Bimal, stands wrongly debited to his Personal Account.
(iv) A credit sale of ₹ 4,230 to Krishan entered as purchase from Kishan ₹ 4,320.
(v) Ramesh's Account was credited with ₹ 840 twice instead of once.

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