Cash Sales Journal Entry – Accounts

Cash Sales Journal Entry “Cash Sales Journal Entry is the accounting entry made in the books of accounts, to record cash sales, i.e., sales transactions where payment has been received from the buyer at the time when the goods are transferred.”

Further, the Sales could be of an Asset, or trading goods. The Sales journal entries can therefore be divided in the following categories : –

● Sales of trading goods on cash ● Sales of an Asset for cash

Each of cash sales journal entries are discussed as under : –

Cash Sales Journal Entry – Goods Question 1:

What would be the Journal Entry for Sale of goods amounting to Rs. 10,000 in Cash ?

Explanation:

Since Sale of goods is an income, so, Sales A/c would be credited, because according to the Rules of Debit and Credit, an income A/c is credited .

Further , receipt of money for Sales of goods in Cash , results in increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited, as an increase in an Asset account is debited.

Hence the entry would be : –

Cash A/c Dr. 10,000

To Sales A/c 10,000

Cash Sales Journal Entry – Asset

Question 2 :

What would be the Journal Entry for Sale of Furniture amounting to Rs. 10,000 in Cash ?

Explanation:

Since Sale of Furniture results in an decrease in the value of furniture, Furniture A/c would be credited, because according to the Rules of Debit and Credit, an decrease in an asset A/c is credited .

Further, on Sales of Furniture in Cash, there is an increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. . So Cash A/c would be debited.

Hence the correct entry is:

Cash A/c Dr. 10,000

To Furniture A/c 10,00