Sales Transactions In Accounting

Like Purchases Transactions, Sales Transactions are also divided into two types which are explained below:

Cash Sales Transactions

It is an exchange of goods sold for cash between seller and buyer and it is recorded only in the Cash Book. For Example, Mr. A sold goods worth Rs. 8000 to Mr. B for Cash, then it is considered as a Cash Sales Transaction from the point view of Mr. A while it is Cash Purchases Transaction for Mr. B.

Credit Sales Transaction

In Credit Sales Transaction, goods are sold on credit basis between sellers and buyers. These transactions are recorded only in the Sales Day book. For Example, Mr. A as a seller sold goods worth Rs. 9000 to Mr. B (buyers) on account, then we say that it is a Credit Sales Transaction for Mr. A while it is a Credit Purchase Transaction for Mr. B.