How To Calculate Credit Sales

We already know that Goods sold are called Sales. Also, we learned that Sales may be made on Cash Basis or Credit Basis. In case of Accounts Receivable or Debtor, Sales is called Credit Sales as goods are sold on Credit Basis within the specified Accounting Cycle.

Now the question How To Find Out Credit Sales or Net Credit Sales?

You May Also Study, " How To Calculate Credit Purchases"

Credit Sales Calculation

Credit Sales is found out by preparing Accounting Receivable T Account.

                                                                  ABC Company

                                     Performa of Debtors / Accounts Receivable T Account

                                                        For The Current Accounting Cycle

                                     Rs.                                                                             Rs.

Opening Balance b/d  XXX                   Cash Received From Customers   XXX

Sales                           XXX                   Sales Returns                                 XXX

                                                                Discount Allowed                         XXX

                                                                                                              

                                                               Closing Balance c/d                       XXX

                                 ________                                                                    _________

                                 ________                                                                    _________

For Example, ABC Company is doing the business of Wholesale and having the Beginning and Ending Balances For Accounts Receivable is Rs. 100000 and 150000 respectively for the Current Accounting Period. The business received Cash From Customers is Rs. 200000, Discount Allowed To Customers is Rs. 30000, Sales Returned By Customers is Rs. 15000, then Credit Sales can be calculated by Preparing Accounts Receivable T Account as shown below:

                                                                       ABC Company

                                                Total Debtors / Accounts Receivable T Account

                                                             For The Month of June, 2018

                                        Rs.                                                                        Rs.

Opening Balance b/d   100000        Cash Received From Customers      200000

Sales (Balance Figure)  295000      Sales Returns                                    15000

                                                         Discount Allowed                              30000

                                                         Closing Balance c/d                          150000

                                       _______                                                             ________
                                     
                                        395000                                                                 395000
                                       _______                                                             ________

So, in this way, we can find out the value of Credit Sales or any Missing Figure of any Account related to Total Accounts Receivable / Debtors T Account.