Are sales a debit or credit?

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Solution

Sales are credited to the books of accounts as they increase the equity of the owners. Sales are treated as credit because cash or a credit account is simultaneously debited.

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Are debits or credits listed first in journal entries? Are debits or credits indented?

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

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(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.

Are debits or credits listed first in journal entries? Are debits or credits indented?

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