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Sales (Journal) Book

All credit sales of goods are recorded in the sales journal. Cash sales are recorded in the cash book. The format of the sales journal is similar to that of the purchases journal explained earlier. The source document for recording entries in the sales journal are sales invoice or bill issued by the firm to the customers. The date of sale, invoice number, name of the customer and amount of the invoice are recorded in the sales journal. Other details about the sales transaction including terms of payment are available in the invoice. Two or more than two copies of a sales invoice are prepared for each sale. The book keeper makes entries in the sales journal from one copy of the sales invoice.

The format of the sales journal is shown in figure 4.8.
 
Sales (Journal) Book

Date

Invoice No.

Name of the Customer

(Account to be Debited)

L.F.

Amount

Rs.

 

 

 

 

 

Fig 4.8: Format of Sales (journal)cash book

 

In the sales journal, one additional column may be added to record sales tax recovered from the customer and to be paid to the government within the stipulated time. Periodically, at the end of each month the amount column is totaled and posted to the credit of sales account in the ledger.

Posting to the debit side of individual customer's accounts may be done daily.

 

Problem#6
M/s Koina Supplies sold on credit:
  1. Two water purifiers @ Rs. 2,100 each and five buckets @ Rs 130 each to M/s Raman Traders (Invoice no. 178 dated April 06, 2005).
  2. Five road side containers @ Rs 4,200 each to M/s Nutan enterprises (Invoice no 180 dated April 09, 2005).
  3. 100 big buckets @ Rs 850 each to M/s Raman traders (Invoice no. 209, dated April 28, 2005).
The above stated transactions will be entered in a sales journal as follows:

Solution:
Books of Koina Suppliers
Sales (Journal) Book

Date

Invoice No.

Name of the Customer

(Account to be Debited)

L.F.

Amount

Rs.

2005

Apr 06

Apr 09

Apr 28

Apr 30

 

178

180

209

 

Raman Traders

Nutan Traders

Raman Traders

 


4,850

21,000

85,000

_______

1,10,850

_______

Posting from the sales journal are done to the debit of customer's accounts kept in the ledger. Like the purchases journal, individual customer's accounts are generally posted daily, with the amount involved. The sales journal is also totaled periodically and this total is credited to sales account in the ledger. The sales (journal) book illustrated above will be posted in the related ledger account in the following manner:

Raman Traders Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

Apr 06

Apr 28


Sales

Sales

 


4,850

85,000

       

Nutan Enterprises Account
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

Apr 01

 

Sales

 

 

21,000

       

Sales Account
      
Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

         

Sundries as per Sales book

 

1,10,850





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