Dual Aspect/ Double Entry

Revenue (sales) is $440 so the dual effect/double entry for this transaction is: Dr Cash (asset) $440 Cr Sales (income) $440 This is the only effect/entry. Cost of sales and profit are not recorded on a transaction-by-transaction basis for each sale. Only at the end of the reporting period, profit (or loss) for the period will be calculated by transferring all the income and expenditure amounts to a profit and loss a/c. In this, revenue will simply be all the sales for the period and cost of sales will be opening inventory + purchases - closing inventory.