Question

Sales made to Mahesh for cash should be debited to ________.

• A. Cash account
• B. Mahesh account
• C. Sales account
• D. Purchase account

Answer 1

The correct option is A Cash account

Every accounting transaction will have two affect. One for debit and one for credit as the accounting is based on double entry system of accounting.

Sales made to Mahesh for cash affect two accounts i.e cash and goods. Both are real account. Rule of real account says "Debit whats comes in and credit what goes out"

Accordingly the accounting entry will be:

Cash A/c Dr.

To Goods A/c.