Question

Sales made by Mahesh for cash should be debited to _____________.

• A. Cash A/c
• B. Mahesh A/c
• C. Sales A/c
• D. Sales return A/c

Answer 1

Answer: (A)

Cash A/c

Sales (Goods) and Cash both account are classifies as real account. The rule for real account is "debit what comes in and credit what goes out'

Accounting entry for cash sales will be as under:

Cash A/c Dr, (debit what comes in)

To Sales (Goods) A/c (credit what goes out)