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Answer:
Cash Sales Transaction
Journal Entry
Dr. Cash 100,000
Cr. Sales 100,000
Cash received and sales has been recorded due to the nature of Cash and Income, Cash and Sales is entered as Debit and credit respectively.
* For Journal posting MS excel file is attached which has T account with above transaction posted in it.
Explanation:
The debit of the journal entry is debited to the relevant T account and the credit of the journal entry is credited to the relevant T account.
The general ledger may have different T- accounts but the posting of entries may differ in the T- accounts as compared to the journal entry depending on the nature of the entry and the T-account.
For example suppose the company has the rent expense of $ 100,000 for the current month and is payable by the end of the quarter.
The journal entries are
Rent Expense $ 100,000 Dr.
Rent Payable $ 100,000 Cr.
At the end of the quarter the entry would be
Rent Payable $ 100,000 Dr.
Cash $ 100,000 Cr.
Now 3 T- accounts are used
Rent Expense Rent Payable Cash
Dr Cr Dr Cr Dr Cr
$ 100,000 Dr $ 100,000Cr $ 100,000 Cr
$ 100,000Cr $ 100,000Dr
Now notice that the rent is first debited as it is an expense and expenses are debited. Then it is credited when it is paid.
Rent Payable is credited as it is a liability and then debited when it is paid.
Cash is credited as expense is paid.
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