Double Entry for a Credit Sale I
Not every business makes cash sales. However, with a credit sale, there is no immediate entry in the Cash account, since no cash has actually changed hands. Therefore, debtors accounts are used. For example, if a business makes a credit sale for £200, the sale itself is accounted for as follows:
DEBTORS ACCOUNT
Debit £200
SALES ACCOUNT
Credit £200
Happy Accountant | Accountancy, Accountant, Accounting, Bookkeeping, Small Business, Working for yourself
