sold goods to mohan on credit Journal entry
Answers
to sales a/c
( being goods sold to Mohan on credit)
Mohan a/c…Dr
To Sales a/c
(being goods sold on credit)
Explanation:
The difference is the firms allowing the customer to pay back the money for the particular goods after sometime. Selling goods in is means when the firm allows the consumer to buy the goods and take a later date is called credit sales of goods.
The visible difference in this transaction would be in the ledgers as we have to create a different ledger account to post the transaction. This transaction is mostly possible according to the rules of gold in accounting which says that credit what goes out and debit what comes in.
Mohan is our debtor and sales are goods that are going out we therefore we can eat them and debit Mohan.
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