Saved Bookmarks
| 1. |
Total of the Sales Book is posted to the credit side of the Sales Account in the General Ledger while individual account of customers is debited by the amount of their respective purchases.Is the above statement correct ? Give reasons. |
| Answer» SOLUTION :Yes. Sale is arevenue account and , therefore, following the RULE 'Increase in revenue is CREDITED and decrease debited' SALES Account is credited. Since, the Sales Book contains records of credit sales, the Purchaser's Account (being debtors) is debited following the rule applicable to ASSET Accounts, i.e., 'Increase in assets is debited and debited and decrease credited'. | |