Double Entry for a Credit Sale I

Not every business makes cash sales.  However, with a credit sale, there is no immediate entry in the Cash account, since no cash has actually changed hands.  Therefore, debtors accounts are used.  For example, if a business makes a credit sale for £200, the sale itself is accounted for as follows:

DEBTORS ACCOUNT
Debit £200

SALES ACCOUNT
Credit £200

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