Sales T Account In Accounting
Sales T Account is a standard form of a Ledger Account . It is prepared to record only Credit Sales Transactions transferred from Sales Journal According to the Rules of Debit And Credit , the normal or usual balance (which is finally closed at the end of the accounting period to Income Statement Later on) is Credit , but when it decreases, we debit as in case of passing Closing Journal Entries . Let’s us prepare Sales T Account with the help of an example. Suppose, Mr. A is a sole proprietor. He deals in the Sales of clothes. On 1 st March, 2019, he sold 10 pieces of clothes each costing Rs. 5000 during the period of Rs. 50000 to his customer (Accounts Receivable), Mr. b. This creates Credit Sales in the Books of Accounts of business of Mr. A. Then, at first, this Transaction is journalized to Sales Journal and then posted to Sales Ledger Account as shown below: ...