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CSEET · Fundamentals of Accounting · Basic Concepts and Principles of Accounting

Mehta Traders sold goods on credit to Rohan for ₹40,000. Under the traditional rules of debit and credit, which pair of accounts is correctly debited and credited?

Rohan's account is debited and Sales account is credited. Rohan is a personal account that receives the benefit of the goods, so he is debited, while Sales is a nominal account representing income, which is credited under the traditional rules.

  1. ADebit Sales, credit Rohan
  2. BDebit Rohan, credit SalesCorrect
  3. CDebit Goods, credit Rohan
  4. DDebit Rohan, credit Cash

Explanation

Rohan is a personal account and receives the benefit, so debit the receiver. Sales is a nominal account for income, so credit it. The first option reverses the entry. The third uses the wrong account for a sale. The fourth involves cash, but no cash is received.

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