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 .