Tuesday, September 23, 2014

Sales Book

The sales book is used to record all credit sales of goods dealt in business. Cash sales, cash and credit sales of assets are not entered in this book. The entries in the sales book are on the basis of the invoices issued to the customers with the net amount of sale. The format of sales book is shown below

  • Date Column – shows the date on which the transaction took place.
  • Particulars Column – This column includes the name of purchasers and the particulars of goods sold.
  • Outward Invoice No. Column – Reveals the serial number of the outward invoice.
  • L.F. Column – The page number of the customer’s accounts in the Ledger is recorded.
  • Details Column – Contains the amount of goods sold and the amount of trade discount if any
  • Total Column – This column shows the net amount which is receivable from the customers.
  • Remarks Column – Any other extra information will be recorded


Now Let us understand the Sales Book and post it in ledger with the help of the following illustration
Given the following are the transactions, let us prepare the sales day book of M. Amin and post it into ledger

DateAmount
January 5,2014Sold goods to Idea college200
" 10Sold goods to Ankith & Co.100
" 20Credit sales to Karthik400
" 31Sold goods to cheap stores100



Sales Day Book
DateParticularsInv.No.L.F.Amount $
January 5,2014 Sold goods to Idea college200
January 10,2014Sold goods to Ankith & Co.100
January 20,2014Credit sales to Karthik400
January 30,2014Sold goods to cheap stores100
Total : 800


Now the individual entries are posted in their respective Ledgers as shown below:
Dr
Sales Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 5,2014By Sundry as per Sales Book800


Dr
Idea College Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
Jan 5,2014To Sales200


Dr
Ankith & Co Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
Jan 102014To Sales100


Dr
Idea College Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
Jan 20,2014To Sales400


Dr
Idea College Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
Jan 30,2014To Sales100



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