What is Credit Sales - Definition And Meaning
When goods are sold on credit basis or services are rendered to customers on account, then we can say that Sales are made on account. So, credit sales is the part of Total Sales which the sum of Cash Sales + Credit Sales. Sales Day Book is prepared to record Credit Sales Transactions. The carried down value is transferred to Income Statement or Profit And Loss Account at the end of Accounting Period. We Credit it when it is accrued and Debit it when we close it. Credit Sales Journal Entry Example: Suppose Mr. A sold 3 Tables Rs. 30000 (Each Rs. 10000) to Mr. B on Credit, then following Journal Entry is recorded in Sales Day Book as shown below: Mr. A 30000 ...