Account Sales 📊
Scenario:
- After 1 month, Simran sells 800 shirts.
- She spends money on Godown Rent and Advertisement.
- She keeps her Commission.
- She needs to send the balance money to Raj.
- She prepares a summary statement called Account Sales.
Definition: A periodic statement sent by the Consignee to the Consignor detailing:
- Gross Sales made.
- Expenses incurred by Consignee.
- Commission deducted.
- Advance payment (if any) deducted.
- Net Amount Payable (Balance Draft).
Format of Account Sales 📝
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Gross Sales Proceeds (800 shirts @ ₹500) | 4,00,000 | |
| Less: Expenses Incurred: | ||
| Unloading Charges | 2,000 | |
| Godown Rent | 5,000 | |
| Less: Commission: | ||
| Ordinary (5% of 4,00,000) | 20,000 | (27,000) |
| 3,73,000 | ||
| Less: Advance Paid | (1,00,000) | |
| Net Amount Sent via Bank Draft | 2,73,000 |
Who sends to whom?
Proforma Invoice: Consignor -> Consignee. (Start of journey). Account Sales: Consignee -> Consignor. (End of journey).
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Account Sales is prepared by:
💡 Final Wisdom: "Account Sales is the moment of truth. It tells the owner: 'Here is what I sold, here is what I spent, here is my cut, and here is your money.'" 💰
Next up: Del Credere Commission - Who pays for Bad Debts? 💸