Example of Journal Entry for Sales

Example of Journal Entry for Sales

There can be three types of sales transaction i.e sales on cash, sales on credit, and sales on partial payment. In all three types of transaction sales being revenue (income) is credited and corresponding head of account which may be cash, account receivable is credited respectively.

Example of Cash Sales

ABC & Co made cash purchases of apples $ 8000. ABC & Co also purchase apples and mango from another supplier XYZ and issued a cheque amounting $ 5000.

Solution

Sales account will be debited according to debit credit rules being income for the organization and cash account will be credited because of decrease in cash. (Decrease in asset is credited)

Date	Particulars	Dr	Cr
09 Nov ,2013	Cash a/c	8000
09 Nov ,2013	Sales a/c		8000

Date	Particulars	Dr	Cr
13 Nov ,2014	Bank a/c	5000
13 Nov ,2014	Sales a/c		5000

Example of Credit Sales

ABC & Co sold stationary items of $ 800 to XYZ & Co and payment is to be made after three months of sales date.

Solution

Sales is again credited in this example being income for the organization and the XYZ company is debited being asset (increase in asset is debited)

Date	Particulars	Dr	Cr
18 Jan ,2014	XYZ & Co a/c	1000
18 Jan ,2014	Sales a/c		1000

Example of partly paid Sales

ABC & Co soled lunch boxes of $15,000 to XYZ & Co and received a cash of $ 10,000 the balance amount will be received next week.

Solution

Sales is credited as explained above and the debit side is divided into two segments i.e. cash and receivable from XYZ & Co (both are asset and increase in asset is debit)

Date	Particulars	Dr	Cr
19 Feb ,2012	Cash	10,000
19 Feb ,2012	XYZ & Co		2,000
	Sales a/c		3,000