How To Calculate Cash Sales

Goods Sold For Cash are called Cash Sales. For Example, if Mr. A Sold Goods Worth Rs. 30000 To Mr. B For Cash, then this is the Business Transaction for Cash Sales. Cash Sales is calculated by deducting Credit Sales From Total Sales. If Total Sales is given, then we need to calculate Credit Sales and finally we can find out Cash Sales easily.

You may also find this article helpful, “How To Calculate Credit Sales”

Following Equation is used To Find out Cash Sales:

Total Sales = Cash Sales + Credit Sales

Cash Sales = Total Sales - Credit Sales

Example, if the Credit Sales = Rs. 500000, And Total Sales = Rs. 700000, then Cash Sales can be found as shown below:

Cash Sales = 700000 - 500000 = Rs. 200000

From the above equation, the businesses can also calculate the value of Credit Sales or Total Sales.