Sales journal entries are used to record the revenue from sales transactions. Depending on whether the sales are made on credit or for cash, the entries will differ. Here are the typical journal entries for sales:
1. Sales on Credit
When recording a sale made on credit:
- Debit Accounts Receivable(Sundry Debtor)
- Credit Sales Revenue
Example:
Date Particulars Debit (₹) Credit (₹) ------------------------------------------------------------------------ 2024-06-06 Accounts Receivable A/c 40,000 To Sales Revenue A/c 40,000 (Being goods sold on credit)
2. Cash Sales
When recording a sale made for cash:
- Debit Cash
- Credit Sales Revenue
Example:
Date Particulars Debit (₹) Credit (₹) ------------------------------------------------------------------------ 2024-06-06 Cash A/c 40,000 To Sales Revenue A/c 40,000 (Being goods sold for cash)
3. Sales with GST (Goods and Services Tax)
When recording a sale with GST (assuming GST rate is 18%):
- Debit Accounts Receivable or Cash
- Credit Sales Revenue
- Credit GST Payable (or Output GST)
Example (for credit sales):
Date Particulars Debit (₹) Credit (₹) ------------------------------------------------------------------------ 2024-06-06 Accounts Receivable A/c 59,000 To Sales Revenue A/c 50,000 To GST Payable A/c 9,000 (Being goods sold on credit including 18% GST)
Example (for cash sales):
Date Particulars Debit (₹) Credit (₹) ------------------------------------------------------------------------ 2024-06-06 Cash A/c 59,000 To Sales Revenue A/c 50,000 To GST Payable A/c 9,000 (Being goods sold for cash including 18% GST)
4. Sales Returns and Allowances
When a customer returns goods or receives an allowance:
- Debit Sales Returns and Allowances
- Credit Accounts Receivable (for credit sales) or Cash (for cash sales)
Example (for credit sales returns):
Date Particulars Debit (₹) Credit (₹) ------------------------------------------------------------------------ 2024-06-15 Sales Returns and Allowances A/c 5,000 To Accounts Receivable A/c 5,000 (Being goods returned by customer)
Example (for cash sales returns):
Date Particulars Debit (₹) Credit (₹) ------------------------------------------------------------------------ 2024-06-15 Sales Returns and Allowances A/c 5,000 To Cash A/c 5,000 (Being goods returned by customer)
These journal entries help in accurately recording the sales transactions, maintaining proper tracking of receivables, and ensuring compliance with tax regulations.
