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Question

A sale of goods of vidhya for cash should be debited to ______________.

A
Vidhya's account
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B
Cash account
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C
Sale of goods account
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D
Purchases account
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Solution

The correct option is C Cash account
Sales of goods on cash involves cash and goods account. Both cash and goods are real account. Rule for real account says" debit what comes in". Against sale of goods cash is coming in the system, hence cash account should be debited.

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