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+--- Thread: Accounting treatment of Sales (/showthread.php?tid=6842)
Accounting treatment of Sales - atiq100 - 11-05-2009
salam friends,
why sale is credit? give me a solid reason.
when sale is debit?give me a solid reason
- Mujahid - 11-05-2009
[d]
solid kaun sa? loha ya copper?
- danishayub_76 - 11-17-2009
Dear. Sales transaction is credited because
i. You need to debit something against this credit.
ii. You will debit whatever you receive in return of this transaction, it can be a cheque, cash or something else.
iii. If cash sales is made. Then you will be receiving cash in return. cash is a real account and always debited when increases.
while on the other hand sales is a income account and credited when it is increasing.
regards,
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Mujahid</i>
<br />[d]
solid kaun sa? loha ya copper?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
- danishayub_76 - 11-17-2009
Sorry. Mujahid, I wrongly quoted your reply instead of atiq's.