Net sales, Accounting Standards

This includes both cash and credit sales of goods. From this demonstration of total sales, sales return also termed as Returns Inward, if any then is deducted in the inner column and the net sales amount is demonstrated in the outer column on the credit side of the Trading Account. Sales of assets are not credited to the Trading Account. This must be noted, if goods have been sold but not even dispatched, these must not be demonstrated under sales but are comprised in closing stock if the property or ownership in the goods has not passed to the customer. However if the property/ownership in the goods has passed to the customer goods sold but not even dispatched this will not be included in closing stock but will be termed as sales.

Subsequent is the proforma of the Trading Account:

Trading Account For the Year Ended

224_Net Sales.png

Posted Date: 4/3/2013 6:20:37 AM | Location : United States







Related Discussions:- Net sales, Assignment Help, Ask Question on Net sales, Get Answer, Expert's Help, Net sales Discussions

Write discussion on Net sales
Your posts are moderated
Related Questions
These comprise goods purchased only for production and selling purposes. Goods utilized as assets and not for sale are not comprised in this head. Net purchase is the dissimilarity

Balance sheet is related along with reporting the financial position of an entity on a specific point in time. Such position is conveyed in terms of listing all the things of value

Q. Accounting Education Change Commission? Accountants in practice as well as business executives have generally been dissatisfied with accounting graduates' capability to thin

The American Accounting Association is one of the accounting organizations discussed later in this Introduction it defines accounting as "the process of measuring, identifying, and

The main function of accounting is to accumulate accounting data so as to calculate the profit and loss made through the business firm throughout and also to KNOW the financial pos


It is generally taken to include currency or legal tender, cheques or any other document which circulates as cash. It is generally classified like a current asset while it is acces

a.Compute the number of preferred shares that were issued during 20X6, which is Preferred stock, $100 par value, 10% $580,000 $500,000

Standards at International Level: In view of the development of international trade and multinational enterprises, the requirement for standardization at the international level w

What take place in a rights issue of shares? 1. Any premium on issue is added to a capital reserve. 2. Any type of premium on the issue is added to a revenue reserve. 3. A