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Question

A sale of goods to Ram should be debited to ____________.

A
Ram
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B
Cash
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C
Sales
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D
Capital
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Solution

The correct option is A Ram
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.

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