Sale of goods to Ram for Rs. 1,000 with a credit term of 5 days is a/an ____________.

Cash Transaction

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Credit Transaction

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Barter System

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Internal Event

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Solution

The correct option is B Credit Transaction
The transaction in which there is no immediate payment of cash is known credit transaction. For e.g., sale of goods to Ram for Rs. 1,000. In this transaction goods worth Rs. 1,000 sold to Ram on 5 days credit is a credit transaction as the payment is not made immediately for the goods.

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Similar questions

Q. Sale of goods to Ram for Cash

R s .1000

is a ______________.

Q. A credit sale of goods to Ram should be debited to ______________.

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

Ascertain the difference in trial balance.

(a)	Credit sales to Mohan Rs 7,000 were posted to Karan as Rs 5,000.
(b)	Credit purchases from Rohan Rs 9,000 were posted to the debit of Gobind as Rs 10,000.
(c)	Goods returned to Rakesh Rs 4,000 were posted to the credit of Naresh as Rs 3,000.
(d)	Goods returned from Mahesh Rs 1,000 were posted to the debit of Manish as Rs 2,000.
(e)	Cash sales Rs 2,000 were posted to commission account as Rs 200.

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Purchase of Inventory for cash.
(ii) Purchase of goods on credit.
(iii) Sale of Goods costing Rs. 10,000 for Rs. 12,000 for cash.
(iv) Sale fo Goods on Credit.
(v) Purchase of a fixed asset by issue of shares.

Q. Give rectifying entries for the following:
(i) A credit sales of goods to Ram ₹ 2,500 has been wrongly passed through the 'Purchases Book'.
(ii) A credit purchase of goods from Shyam amounting to ₹ 1,000 has been wrongly passed through the 'Sales Book'.
(iii) A return of goods worth ₹ 1,100 to Mohan was passed through the 'Sales Return Book'.
(iv) A return of goods worth ₹ 500 by Ganesh were entered in 'Purchases Return Book'.

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