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If Ram has sold goods for cash, the entry will be recorded
- a)In the Cash Book
- b)In the Sales Book
- c)In the Journal
- d)In the Inventory Book
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If Ram has sold goods for cash, the entry will be recordeda)In the Cas...
Answer:
Recording Sales for Cash in Accounting
When a business entity sells goods or services for cash, it needs to record the transaction in its accounting books. The entry for such a transaction will be recorded in the Cash Book, which is a subsidiary book that records all cash receipts and payments.
Reasons for Recording Sales in Cash Book
1. To maintain accurate records of cash transactions.
2. To reconcile the cash balance in the bank account with the cash balance in the Cash Book.
3. To track the cash flow of the business and monitor its liquidity.
Steps Involved in Recording Sales in Cash Book
1. Determine the amount of cash received from the sale of goods or services.
2. Record the transaction in the Cash Book by debiting the cash account and crediting the sales account.
3. Verify the accuracy of the entry by cross-checking it with the sales invoice issued to the customer.
4. Update the ledger accounts and trial balance to reflect the transaction.
Conclusion
In conclusion, the entry for sales made for cash is recorded in the Cash Book of the business. This helps the business to maintain accurate records of cash transactions, reconcile the cash balance, and monitor its liquidity.
Recording Sales for Cash in Accounting
When a business entity sells goods or services for cash, it needs to record the transaction in its accounting books. The entry for such a transaction will be recorded in the Cash Book, which is a subsidiary book that records all cash receipts and payments.
Reasons for Recording Sales in Cash Book
1. To maintain accurate records of cash transactions.
2. To reconcile the cash balance in the bank account with the cash balance in the Cash Book.
3. To track the cash flow of the business and monitor its liquidity.
Steps Involved in Recording Sales in Cash Book
1. Determine the amount of cash received from the sale of goods or services.
2. Record the transaction in the Cash Book by debiting the cash account and crediting the sales account.
3. Verify the accuracy of the entry by cross-checking it with the sales invoice issued to the customer.
4. Update the ledger accounts and trial balance to reflect the transaction.
Conclusion
In conclusion, the entry for sales made for cash is recorded in the Cash Book of the business. This helps the business to maintain accurate records of cash transactions, reconcile the cash balance, and monitor its liquidity.
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Community Answer
If Ram has sold goods for cash, the entry will be recordeda)In the Cas...
Because cash sale of goods are recorded in cash book whereas credit sale of goods are recorded in sales book.
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If Ram has sold goods for cash, the entry will be recordeda)In the Cash Bookb)In the Sales Bookc)In the Journald)In the Inventory BookCorrect answer is option 'A'. Can you explain this answer?
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If Ram has sold goods for cash, the entry will be recordeda)In the Cash Bookb)In the Sales Bookc)In the Journald)In the Inventory BookCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If Ram has sold goods for cash, the entry will be recordeda)In the Cash Bookb)In the Sales Bookc)In the Journald)In the Inventory BookCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If Ram has sold goods for cash, the entry will be recordeda)In the Cash Bookb)In the Sales Bookc)In the Journald)In the Inventory BookCorrect answer is option 'A'. Can you explain this answer?.
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