Accounts and Finance
Step 2 Passing Routine Entries

  Cash Sales

Cash Sales from shop  Item A 1000 kg*15=15000

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Credit Sales

Sales made to AC Oberoi and Co 30000 Kg Item A @10 each on 1 August.

Amount received from AC Oberoi Rs 285000 by cheque on 15 August and balance by cash on 18 September



1 august.   AC Oberoi A/c Dr   300000 (30000*10)

                        To Sales  A/C          300000


15 August     Bank A/c Dr     285000

                          To AC Oberoi A/c    285000


18 September  Cash A/c Dr     15000

                               To Ac Oberoi A/c   15000

                      ( Balance Amount   300000-285000)


Sales +Direct Income

 Bill To :Ajit Traders  

Item A 15000 Kg @ 20/kg 300000

Item B 5000 Kg @ 40/kg   200000

Total                               500000


Transportation Charges     20000

Total                               520000



               Ajit   A/c Dr    520000

                      To Sales                         500000

                       To Freight Income            20000



Cheque received from Ajit traders for 80% payment.

Balance amount not yet received.


              Bank  A/c Dr          416000 (520000*80%)

                    To Ajit                     416000


No entry for balance amount as it has not been received yet. 


Some amount in advance

The company entered into agreement to sell 2000 kg Item B @ 50/Kg to Khan Traders on 17 September.

 It received 10% payment in advance on 18 September. Sales Bill was issued on 19 September and balance was received on 20 September


17 September     No entry for entering into contract


18 September      Cash A/c Dr     100000  (2000*50*10%)

                                    To Khan Traders          100000


19 September       Khan Traders A/c Dr     1000000

                                     To Sales  A/c                 1000000


20 September          Cash  A/c Dr         900000  (1000000-100000)

                                      To Khan Traders     900000




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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.