State whether the following statement are ‘True or False’ with reason :

When goods are sold for cash, the personal a/c of the buyer is debited.

5 views

1 Answers

This statement is False.

In a cash transaction, there is no Personal A/c. The personal account comes in a credit transaction. So when goods are sold for cash, the cash account is debited. A cash account is a real account and as per rule debit what comes in.

5 views

Related Questions