Why credit sales is recorded

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1359 Points Posted on 29 December 2021
why credit sales is record on the date of sales, not on the day of cash/payment received for sales
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On 29 December 2021 at 21:09 Report
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This discussion explains why credit sales are recorded on the date the sale occurs, rather than when payment is received. This is due to the accrual basis of accounting, which is considered a scientific and proper method for companies. It ensures revenue is recognised when earned, even if cash hasn't changed hands yet, which is crucial for accurate financial reporting.

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My grammar is 💯 good I
7306 Points Posted on 30 December 2021

Accruals. This why revenue can be recognised firat

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On 30 December 2021 at 03:22
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3145 Points Posted on 30 December 2021
Accrual basis of accounting system are considering in companies a scientific proper method to record.
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On 30 December 2021 at 07:44
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Company Secretary
7085 Points Posted on 30 December 2021
Revenue Recognition on the Basis of Accrual System of Accounting
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On 30 December 2021 at 09:59
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Accountant
60 Points Posted on 31 December 2021

Sales books always running in sequence like invoice number, date etc. but payment is not sure. suppose you make an invoice on dated 31-12-2020 and payment not received till 31-12-2021.Then how would you record your sale.  

 

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On 31 December 2021 at 14:57

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