Question

income and expenditure account sale of old furniture - 42000 adjustment: value of old furniture was- 45000

Answer 1

Answer:

In bookkeeping, accounting, and financial accounting, net sales are operating revenues earned by the company for selling its products or rendering its services. Also referred to the revenue, they are reported directly on the income statement the Sales or Net sales.

In financial ratios that use income statement sales values, "sales" refers to the net sales, not gross sales. Sales are unique transactions that occur in professional selling or during the marketing initiatives.

Revenue is earned when goods are delivered or services rendered. term sales in a marketing, advertising or a general business context often refers to a free in which the buyer has agreed to purchase some products at a set time in future. From an accounting standpoint, sales do not occur until product is delivered. "Outstanding orders" refers to sales orders that have been filled.

A sale is a transfer of the property for money or credit. In double-entry bookkeeping, a sale of merchandise is also recorded in general journal as a debit to cash or accounts receivable and a credit to sales account The amount recorded is actual monetary value of transaction, not the list price of the merchandise. A discount from list price might be noted if it applies to sale.

Fees for services are recorded separately from sales of merchandise, but bookkeeping transactions for recording "sales" of services are much similar to those for recording sales of tangible goods.

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