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| Sold Goods For Cash Journal Entry |
When a business sells goods for cash, then the company considers the revenue i.e. sales income.
Journal Entry for Cash Sale of Goods
Cash or Bank Account Debit
Sales Revenue Account Credit
- The "Cash" or "Bank Account" is debited because of an increase in the cash or bank balance.
- The "Sales Revenue" account is credited because of recognizes the revenue from the sale.
This above journal entry shows the increase the cash or bank balance of the company. and the recognition of sales revenue. If the sale is made on a credit basis (i.e. the customer shall not pay immediately), you would debit the "Accounts Receivable" i.e. the Debtors instead of "Cash" or "Bank Account."
