Multiple choice general knowledge

Journal entry for "Cash Recd from Arun"

  1. Cash expenses a/c Dr, To Arun Income A/c

  2. Cash in Advance A/c Dr, To Arun a/c

  3. Arun a/c Dr, To cash a/c

  4. Cash A/c Dr, To Arun A/c

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When cash is received from Arun, it means Arun (who owed money) is now paying, so his account is debited (reduced), and Cash account is credited (increased). The correct journal entry is 'Cash A/c Dr, To Arun A/c'. Options A and B use incorrect account titles and logic. Option C reverses the debits and credits incorrectly.