What is Sale? – Explanation with Examples



The sale means giving the ownership of any goods or assets, by receiving/will be received the predetermined price of them. It may be in cash or credit. In credit means, when business sold goods or assets without receiving the predetermined price of them, This due amount will be received in the future.


In accounting, the sale Ledger account is maintained only for goods. When the asset is purchased then it will be debited to the assets account. 

Examples of Transactions of Sale: –

  1. Sold goods to M/s A&B Ltd. worth Rs 10,000.
  2. Sell goods worth Rs 50,000 to Deepak Pvt. ltd for cash.
  3. Sale of goods for Rs 10,000.
  4. Sold Plant worth Rs 15,000. 
  5. Old newspaper worth Rs 1,500, Sold to Shyam & sons. 

Explanation of Examples: –

The first three numbers of examples are is treated as a sale in the accounting and it will be entered in the Sale account. 

But the Fourth number of example is related to the sale of the asset. So, this will not be entered into the sale account. It will be credited to the asset account i.e. Plant and Machine a/c. 

and in last, The fifth transaction is related to the other income. So, it will also not be entered in the sales account. It will be credited to the income account i.e. Scrap a/c.


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