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Answer Posted / pravin.kamble425@gmail.com
We must determine the question asked, it is clearely asked
that what is the entry for Cash received. In business point
of view the first way when we received the cash either
selling some goods or servies to the customer, then other
ways can be, 1) borrowed from bank, 2)Borrowed from
Partner, etc.
So I believe the entry should be for first way of receiving
cash is..
Cash A/c ......................Dr.
To Goods sold / Party A/C .....Cr.
Since Cash is the real a/c, so real a/c rule is debit what
comes in & credit what goes out. So according to this rule
the above entry should be passed. So in this way we must
debit the cash a/c when we actually receive the cash &
credit to next concern a/c for which transaction you
received the cash.
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