One of my collegue is saying that for cash sales we have to put entry by (creating party account) debiting party account (like a credit sale) and again account seperately for cash recieved
my question is then why it is called cash sales, (when we pass entries by debiting party account) why we make 2 entries for a single transaction
tell me whether i am correct or my collegue is correct
Method of cash sales that you are referring to is the conventional approach. It was followed when manual accounting was done. Nowadays, computer does everything, so I think 2 different entries would give detailed information.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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