Sales entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2016 SIR, I WANT TO KNOW THAT IF I HAVE SALE PRODUCT IN CASH & SAME DAY I DEPOSITED SAME AMOUNT IN BANK THEN I BOOK IN TALLY TWO ENTRY WHICH IS RIGHT :
BANK DR SALES CR ( CASH SALE & DEPOSIT SAME AMT. IN BANK )

OR

CASH DR RECEIVE CASH AGAINST SALE
SALES CR

BANK DR DEPOSIT IN BANK
CASH CR

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2016 Sir, please give me reply of my query

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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23 July 2025 Great question! When you make a **cash sale** and then deposit the **same cash into the bank on the same day**, the **correct accounting entries** in Tally (or any accounting system) should reflect both transactions separately.

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### Explanation:

* First, **record the cash sale**: you receive cash, so cash increases and sales increase.
* Then, **record the deposit of cash into the bank**: cash decreases (because you deposited it), and bank balance increases.

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### Correct Entries:

1. **Cash Sale Entry (When you receive cash):**

```
Cash A/c Dr [Amount]
To Sales A/c [Amount]
(Being cash sales recorded)
```

2. **Deposit of Cash into Bank:**

```
Bank A/c Dr [Amount]
To Cash A/c [Amount]
(Being cash deposited in bank)
```

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### Why not directly bank Dr and sales Cr?

* If you directly debit bank and credit sales, you are skipping recording the receipt of cash which actually happened first.

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### Summary:

| Transaction | Debit A/c | Credit A/c | Reason |
| ----------------------- | --------- | ---------- | --------------------- |
| Cash received from sale | Cash | Sales | Recognize cash sale |
| Cash deposited in bank | Bank | Cash | Transfer cash to bank |

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Let me know if you want me to prepare a step-by-step Tally entry guide!

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