**Journal Entry for Goods Sales and Full Settlement**

When goods are sold and the full payment is received, a journal entry is made to record the transaction in the books of accounts. In this case, the goods were sold to Rahul for ₹10,000, and the full settlement of ₹11,000 was received. Let's break down the journal entry step by step:

1. **Identify the Accounts Involved:**
- Sales Account: This account represents the revenue earned from the sale of goods.
- Rahul's Account: This account represents the customer who purchased the goods.
- Cash/Bank Account: This account represents the mode of payment received from the customer.

2. **Determine the Debit and Credit Amounts:**
- Sales Account: Since the goods were sold, the Sales Account needs to be credited with the selling price of ₹10,000.
- Rahul's Account: Rahul's Account needs to be debited with the amount owed by him, which is ₹10,000.
- Cash/Bank Account: The Cash/Bank Account needs to be debited with the amount received, which is ₹11,000.

3. **Write the Journal Entry:**
The journal entry for goods sales to Rahul and the full settlement can be recorded as follows:

```
Sales Account ₹10,000 Credit
To Rahul's Account ₹10,000 Debit
To Cash/Bank Account ₹11,000 Debit
```

4. **Explanation of the Journal Entry:**
- The credit entry in the Sales Account represents the revenue earned from the sale of goods to Rahul.
- The debit entry in Rahul's Account reflects the decrease in his outstanding payable towards the business.
- The debit entry in the Cash/Bank Account represents the increase in cash or bank balance due to the full settlement received.

5. **Impact on Financial Statements:**
- Income Statement: The revenue on the income statement will increase by ₹10,000.
- Balance Sheet: The cash or bank balance on the asset side of the balance sheet will increase by ₹11,000, and the accounts receivable (Rahul's Account) on the asset side will decrease by ₹10,000.

It is important to note that the above journal entry is based on the assumption that the business is using the accrual basis of accounting, where revenue is recognized at the time of sale, regardless of the actual cash receipt. If the business follows the cash basis of accounting, the journal entry would be different, as the revenue would be recognized only when the cash is received.

RAHUL A/C DR. 11000

TO SALES A/C 11000.


THANK YOU!