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Journal entries of sale of goods/stock

When the stock or any asset is purchased for reselling then it is treated as goods for that particular business.
For eg. Ram bought car for reselling as he is a car seller then car purchased by him will be termed as goods/ stock in the books of Ram's business not as an asset.

Journal entry for selling of goods / Stocks:
  • When goods are sold

DD/MM/YYYY                           Debtor A/c   Dr.                                       xxx
(Date of Invoice)                                   To Sales A/c                                                xxx
                                         
                                                  (Being goods sold to Mr. Y )
  • When payment is received from debtor
DD/MM/YYYY                           Bank A/c   Dr.                                       xxx
(Date of Receipt)                               To Debtor A/c                                             xxx
                                         
                                                  (Being Payment received against 
                                                                 the goods sold to Mr. Y )

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