Why income should be credit as it is money in? Can some body explain it please?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
why income is credit in the sales account.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Why income should be credit as it is money in? Can some body explain it please?

    You are right, income is money coming in, but it's coming into the bank account/SLCA. It's not sales coming in. Therefore, you debit the bank account/SLCA and credit sales.

    Try to think of sales as stock going out, so it must be a credit.

    Hope this helps.

    Gem

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