Example of Partly paid Sales Journal Entry

Example of Partly paid Sales Journal Entry

Sales against which partly payment is received is credited with full amount and the cash received is debited with part payment receive and customer is debited with balance amount that is still receivable. It is important to note that cash and receivable both are assets.

Example of Partly paid Purchases

1.       Samee and Farhan & Co. made a Sale for 1100 $ on credit to Faheem and Co. An amount of $800 is received on date of sales and balance amount is received after two months.

Solution

Date	Particulars	Dr	Cr
11 Feb,2014	Cash a/c	800
	Faheem  a/c	300
11 Feb ,2014	Sales a/c		1,100

The following entry will be made at the time of future payment of balance amount is received

From faheem.

Date	Particulars	Dr	Cr
11 April ,2014	Cash a/c	300
11 April,2014	Faheem a/c		300