When we purchased goods,we have passed entry
Purchase Dr 30000
To Party 30000
Later goods sold for 40000 to A
We pass entry
A Ltd Dr 40000
To Sales 40000
(A LTD is Debtor(Asset)
Asset is increased so we debit it)
Sales is an Income,Income is always Credited)
Written on May 26, 2017, 3:31 p.m.