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what does cash sales of 50,000 was banked mean?
it is credited in the cash sales which is confusing me
You are more likely to get a reply if you give your questions context. You add here “it is credited in the case sales which is confusing me” – but that has no context.
When goods are sold for cash – the double entry is:
Dr Cash (in hand)
Cr Revenue (or Sales)When cash is banked the double entry is:
Dr Bank/Cash at bank
Cr Cash (in hand)So “cash sales of 50,000 was banked” means 50,000 received from cash sales was paid into the bank. It might be recorded simply as:
Dr Bank
Cr Revenue
(i.e. the combined effect of the two journals above)
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