Final answer:
To record the sales mentioned, two journal entries are created, one for the credit sale to Din Muhammad of Rs 800 and another for the cash sale of Rs 200. Both increase the Sales revenue with respective debits to the Debtor account and Cash account.
Step-by-step explanation:
To record the transaction mentioned, we need to create two separate journal entries because the sales are made in two different ways: one on credit and the other in cash.
For the credit sale of goods to Din Muhammad of Rs 800, the journal entry would be:
This entry shows that Din Muhammad owes the business Rs 800 for the goods purchased on credit, which increases the debtor's balance, while the credit to the Sales account increases the sales revenue for the business.
For the cash sale of goods worth Rs 200, the following journal entry would be recorded:
This entry reflects the receipt of cash immediately upon the sale, thus increasing the business's cash balance, whereas the credit to the Sales account likewise increases the sales revenue.