1.

What is an Account Sale? How is it different from Statement of Account?OrWhat is ‘Account Sale’? Prepare Account Sale with the help of imaginary figures.

Answer»

Account Sale: Sometimes the owner appoints some agent to increase the sale. The owner sends the goods to his agent on certain terms and conditions. The agent sells the merchandise and calculates the number of actual sales which is submitted to the principal at regular intervals. He deducts from  this all the expenses incurred by him on behalf of the principal and the balance is remitted to the principal. The statements which the selling agent prepares and submits to his principal is called ‘Account Sale’. The account sale gives details and the values of the sales and of expenses incurred by the agent to his principal.

Difference between Statement of Account and Account Sale

Statement of Account

Account Sale

1. This is prepared by the seller and is sent to the customer

1. The Statement which the selling agent prepares and submits to his principal is called account sale.

2. The statement of account is prepared to enable the buyer to compare the account with his own ledger and to check its accuracy.

2. The account sale is sent to the principal by the selling agent as it gives the details and value of the sales and the expenses incurred by the agent on behalf of his principal as well as commission due to the agent.

3. This is sent to purchaser monthly or quarterly or half-yearly

3. The account sale is sent by the agent after selling the whole goods or periodically.

4. The description of expenses is absent. Only the quantity sent, the amount received arid the balance of amount to be paid is shown.

4. Under this, the expenses incurred by the agent and his commission is deducted from the amount of sale and the amount sent to the principal by draft is stated.

5. Statement of account is a copy of the debtor’s account in the seller’s ledger.

5. Account sale is prepared on the printed forms according to the business customs.


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