Multiple choice

The goods were sold to Rajesh worth Rs. 10,000 @ 4% sales tax and recorded in the books. After somtimes, Rajesh becomes insolvent and paid only 60 paise in a rupee. Which of the following accounts is not affected?

  1. Cash A/c

  2. Rajesh's A/c

  3. Sales Tax A/c

  4. Sales A/c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Sales value not affected because the value of sales amount not recoved is transffer to Bad Debt A/c.

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