Natalia Alva In: Category - Journal EntriesWhat is the journal entry for sale of services on credit?journal entrysale of servicessale of services on credit ShareFacebook1 AnswerVotedRecent Palak 2020-08-26T18:24:39+05:30Added an answer on August 26, 2020 at 6:24 pm The sale of services might be a new concept for you as we have commonly heard more about the sale of goods by the businesses. However, the treatment of the two is the same in the books of accounts. Like goods, the sale of services is made on cash as well as credit basis. There are plenty of services provided by companies such as financial, management, software, consulting, marketing services, etc. Journal entry for the sale of services on creditThe respective debtor account is debited while the sales account is credited.1. According to the golden rules of accounting:Debtors a/cDebitDebit the receiverTo Sales a/cCreditCredit all incomes and gains(being services sold on credit)2. According to the modern rules of accounting:Debtors a/cDebitDebit the increase in assetTo Sales a/cCreditCredit the increase in revenue(being services sold on credit)ExampleMr. K availed the financial services of XYZ Ltd. in May amounting to 20,000 with an agreement to pay the same in the following month. The journal entry in the books of XYZ Ltd. for the month of May is as follows:Mr. K’s a/cDebit20,000To Sales a/cCredit20,000(being services sold on credit)Hope this helps. 0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login or register to add a new answer.