Journal Entry of Credit Sales

Credit sales means those transactions under which the customer can take away the goods purchased from seller immediately but the payment can be made after sometime. Given below is the journal entry for credit sales which will be made for recording this transaction by the company in its books of accounts -

Debtor account Dr

To Sales A/C

In the above entry since the customer has not paid the money he or she is recorded as debtor in the books of account. It should be noted in case of cash being paid by the customer also sales account will come on credit side when the journal entry is passed; only difference being cash will be shown on debit side in place of debtor.

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