Journal Entry For Cash Sale of Inventory With Example
Cash Sale of Inventory / Stock With Example Here we are concerned with the Accounting Journal Entry For Cash Sale of Inventory with the help of a example. Previously, we studied about Inventory , Perpetual Inventory and Periodic Inventory Systems . In case of Cash sale of Inventory, the payment is received from customers and goods or products are decreased from our store. So, two types of Accounts are involved. One is Cash and the second one is Sales. So, Cash a/c XXX Sales a/c XXX Both Cash and Sales are increased. When Cash is increased it is debited while when Sales is increased, it is credited. Suppose, a retailer shop has 500 pieces of clothes in stock. 300 pieces of clothes (each costs Rs. 1000) are sold at the rate of 1100 for cash, then following Accounting Journal Entry is passed in the Journal of Retailer...