Cash Sales Journal Entry – Accounts

Cash Sales Journal Entry  is the accounting entry made in the books of accounts, to record cash sales, i.e., sales transaction 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 these  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 a 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 in  increase of Cash, which is an Asset. When an asset is increase, the asset account is debited according to the Rules of Debit and Credit. . So Cash A/c would debited.

Hence the correct entry is:

Cash A/c Dr. 10,000
To Furniture A/c 10,000