How to Sales Journal Entry

Almost any business has sales of items and services and sales journal Entry for invoice is a most too. some of company use accounting software to record their sales and some company intend to have a record on paper too because they cloud not trust of data lost in computer systems.

Any sales for cash cause increase money in cash accounts and decrease items from store then you can record it on journal entry as below:

Cash Sales Journal entry

Assets/ Cash  accounts                    Debit  ( As amount of Sales)

Income /  Sales Accounts                 Credit ( As amount of Sales)

Credit Sales Journal entry

but for sales on credit basis, journal entry is different. When we called it credit sales, it means buyer don’t pay any amount for invoice and amount of sales should be on in debit account of buyer. so that, journal entry will be as below:

Name of Account Debit Credit
Receivable Accounts Yes
Income /  Sales Accounts Yes

This photo shows how to post a credit sales journal in Peachtree accounting software

Sales invoice in Peachtree accounting in Dubai

Note: Most accounting software will post journal entry of invoice automatically based on standard of accounting and you don’t need to post it separately

Sales journal in Peachtree accounting for Dubai

Sales journal in Peachtree

As you see on above photo, amount of invoice (6203.86 USD)  is on debit for receivable accounts (Buyer account is inside receivable accounts)

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