Cash sales

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mighty18
mighty18 Registered Posts: 16
in Bookkeeping Controls
When posting to the sales ledger control account or purchase ledger control account do your entries include cash sales and cash purchases? This is as well as, credit sales & credit purchases.

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  • Cheesypeesy
    Cheesypeesy Registered Posts: 101
    edited July 2018
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    No, the opposite entry for cash sales or purchases will be the bank/cash account. For cash purchases (ignoring VAT):

    Dr Purchases
    Cr Bank

    Cash sales:
    Dr Bank
    Cr Sales

    Only credit sales and purchases interact with their respective control accounts. The control accounts serve as a stopgap between the sale or purchase being made and the money being received or paid.

    So for credit sales, the first entry would be:
    Dr SLCA
    Cr Sales

    Then once the payment is received:
    Dr Bank
    Cr SLCA
    Matthew Dearlove MAAT
    Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.
  • xCarlx
    xCarlx Registered Posts: 6
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    Wow, simple as that. Now it makes sense.

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