A credit sale of goods to Shiva should be debited to ____________.

Sales account

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Goods account

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Shiva's account

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Purchase account

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Solution

The correct option is B Shiva's account
Shiva is the receiver of goods. Personal account rule says "debit the receiver". Hence Shiva's account will be debited.
Entry for credit sale to Shiva will be:
Shiva's Account Dr (Debtor for goods sold on credit)
To Sales Account (Goods sold to customer).

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