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Question

A sale of goods to Vaibhav for cash should be debited to ___________.

A
Vaibhav's account
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B
Cash account
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C
Sale of goods account
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D
None of these Above
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Solution

The correct option is B Cash account
Goods sold to Vaibhav for cash affect two account, i.e. cash and goods which are real account. Rule of real account defines that "debit whats comes in and credit what goes out".
In the given transaction, cash is coming in business hence cash account should be debited by crediting the goods account.

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