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CMA Foundation · Fundamentals of Financial and Cost Accounting · Journal and Ledger

Sold goods to Kavita on credit for Rs 15,000. Which journal entry is correct under the rules of debit and credit?

The correct entry debits Kavita's account and credits the Sales account for Rs 15,000. Kavita is the receiver of the goods, so her personal account is debited, while sales is an income, a nominal account, which is credited.

  1. ASales A/c Dr 15,000 to Kavita A/c 15,000
  2. BKavita A/c Dr 15,000 to Sales A/c 15,000Correct
  3. CCash A/c Dr 15,000 to Sales A/c 15,000
  4. DKavita A/c Dr 15,000 to Goods A/c 15,000 as a capital receipt

Explanation

Kavita is a personal account who receives the benefit (goods), so she is debited. Sales is a nominal account representing income, so it is credited. The first option reverses the entry, and the third wrongly assumes cash was received.

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