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Multicolumn Journal Method

As sale does not take place when goods are sent on approval basis, sales entry is recorded only at the time when the customer signifies his intention to purchase. This method is used when the goods are sent on approval frequently. This method is also known as Multicolumn journal method.

In this method, it is necessary to maintain a specifically ruled sale or return journal/ day book. Multicolumn sales or return journal is prepared mainly with the following columns:


Column No. 13 represents the value of goods sent out but not sold or returned till the close of the year. The total of this column shows the value of goods with the customers at the sale price.


If, at the end of the year, goods are still lying with the customers and the specified time limit is yet to expire, the value of goods lying with the customers must be treated as ordinary stock lying with customers and the following journal entry is passed to record the same:

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