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Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is the Jounal Entry for this transaction ?
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Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is th...
Journal Entry for Selling Goods for Cash
When a business sells goods for cash, it must record the transaction in its books of accounts. The following is the journal entry for selling goods to Shyam for Rs. 95,000:
Explanation of the Journal Entry
The above journal entry has four parts, each of which is explained below:
Debit Cash Account
When a business sells goods for cash, it receives cash as payment. Therefore, the first part of the journal entry is to debit the Cash Account for the amount received, which is Rs. 95,000.
Credit Sales Account
The second part of the journal entry is to credit the Sales Account for the cost of the goods sold, which is Rs. 45,000.
Credit GST Account
The third part of the journal entry is to credit the GST Account for the GST paid on the sale, which is 5,400 (12% of Rs. 45,000).
Credit Shyam Account
Finally, the fourth part of the journal entry is to credit Shyam's Account for the amount due to him, which is Rs. 44,600 (Rs. 45,000 - Rs. 5,400).
When a business sells goods for cash, it must record the transaction in its books of accounts. The following is the journal entry for selling goods to Shyam for Rs. 95,000:
- Debit Cash Account - Rs. 95,000
- Credit Sales Account - Rs. 45,000
- Credit GST Account - Rs. 5,400
- Credit Shyam Account - Rs. 44,600
Explanation of the Journal Entry
The above journal entry has four parts, each of which is explained below:
Debit Cash Account
When a business sells goods for cash, it receives cash as payment. Therefore, the first part of the journal entry is to debit the Cash Account for the amount received, which is Rs. 95,000.
Credit Sales Account
The second part of the journal entry is to credit the Sales Account for the cost of the goods sold, which is Rs. 45,000.
Credit GST Account
The third part of the journal entry is to credit the GST Account for the GST paid on the sale, which is 5,400 (12% of Rs. 45,000).
Credit Shyam Account
Finally, the fourth part of the journal entry is to credit Shyam's Account for the amount due to him, which is Rs. 44,600 (Rs. 45,000 - Rs. 5,400).
Community Answer
Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is th...
Cash a/c dr. 95000
to sales 45000
to profit&loss a/c 50000
to sales 45000
to profit&loss a/c 50000
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Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is the Jounal Entry for this transaction ?
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Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is the Jounal Entry for this transaction ? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is the Jounal Entry for this transaction ? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is the Jounal Entry for this transaction ?.
Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is the Jounal Entry for this transaction ? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is the Jounal Entry for this transaction ? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold goods to shyam costing Rs.45000 at Rs. 95000 for cash. What is the Jounal Entry for this transaction ?.
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