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Goods Sold are called Sales while goods purchased are called Purchases . There are two types of sales, Cash Sales and Credit Sales while purchases consists of Cash Purchases and Credit Purchases . Goods sold for cash is called cash sales. Goods sold on credit or on account is called credit sale while goods purchased for cash is known as cash purchases and goods purchased on credit or on account is called credit purchases in accounting. Sales accou nt  is a Direct Revenue and it is recorded on Income Statement on Revenues Side while purchases accou nt is a type of direct expenses and reported on Income Statement On Expenses Side. Credit Sales is calculated by preparing Accounts Receivable / Debtors T Account while credit purchases is calculated from the preparation of Accounts Payable / Creditors T Account for the accounting period. However, both cash sales and cash purchased are calculated from Cash Book .