WHAT ARE "SALES" IN ACCOUNTS. BASIC ACCOUNTING TERMS.
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00:00Hello guys, this is Sonia Setia, your accounts and equity tutor.
00:03We were doing accounting terms for class 11th accounts 15 number.
00:07We have sales.
00:08So sale, the word is used by the business.
00:11When the business is dealing in the product,
00:15if you sell them, then for that you use the word sale.
00:18So goods, whenever there will be a sale in the business,
00:20for that you will use the word sales.
00:22So what is goods?
00:24Anything physical and visible items,
00:26which if the business buys, then you use the word purchases.
00:30If it sells, then it will use the word sales.
00:32To sell tangible and intangible assets, fixed assets, etc.
00:36you will not use the word sale.
00:38There can be two types of sales.
00:40Cash sales and credit sales.
00:42What will be the entries?
00:43For cash sale, cash account, debit to sales account.
00:46Cash because my asset is increasing,
00:48that's why I made a debit.
00:50What is sales?
00:50My revenue is increasing, that's why I made a credit.
00:53Credit sales, Sam account, debit to sales account.
00:56I made Sam a debtor.
00:58And sales again is my revenue, that's why I made a credit.