What is the journal entry of cash sales to RAM?

What is the journal entry of cash sales to RAM?

Ram companies L.T.D sold some goods of Rs. 1000 + 5% GST in cash. First, you would enter a debitto cash to your checking account. Next, you would enter a credit to the Sales and Sales Tax Collected accounts.

What is the accounting entry for cash sales?

In the case of a cash sale, the entry is: [debit] Cash. Cash is increased, since the customer pays in cash at the point of sale. [debit] Cost of goods sold.

What is the journal entry for credit sales and cash sales?

In the case of credit sales, the respective “debtor’s account” is debited, whereas “sales account” is credited with the equal amount….Journal Entry for Credit Sales.

Is cash sales recorded in journal?

>>Cash sales are entered in sales journal.

What is the journal entry of goods returned to RAM?

Since goods are being sent back to Ram, he is being debited. The goods are being reduced in the books, hence the reason why it is getting credited. Since Ram is getting back the goods it is being credited to his name. This journal entry is a double-entry which shows how and why something is reduced or gained.

What is the journal entry of purchase goods from RAM?

In the given transaction, goods have been purchased from Ram and therefore, the correct entry to be passed is debit the Purchases Account and Credit the Creditor’s (Ram’s) Account.