Why The Sales Journal is Used For Recording Only Credit Sales And Not Cash Sales
A Sales Journal or Sale Day Book is used to record only Credit Sales and not Cash Sales because it is a Special Journal where large n umber of Accou n ti n g / Busi ness Transactions takes place related to Credit Sales while Cash Sales are recorded in Cash Book which is also a Special Journal And Special Ledger. For Example, Mr. A sold goods worth Rs. 7000 To Mr. B on Account, then it is a credit sales transaction and it is recorded on Sales Day Journal in Accounts Receivable Subsidiary Ledger Account . In the above example, if Mr. A sold goods for cash to Mr. B, then it is a Cash Sales transactions and recorded in Cash Book.