When Cash Is Received From Sales, The Amount Is Recorded In The

When Cash Is Received From Sales Then?

When Cash is received from Sales, the amount is recorded in cash debit column as cash is increasing, and sales credit column as sales is increasing according to the rules of debit and credit. Increase in cash affect left side of accounting equation while increase in sales affects right side of accounting equation.

As cash transaction is frequently occurred, so the amount related to cash account is recorded in cash debit column, which is a special amount column. Similarly sales transactions are also occurred in large, so the amount of sales account is recorded in sales credit column and it is also a special amount column.