Sales book records all credit sales made by a business. It is one of the secondary book of accounts and unlike cash sales which are recorded in cash book, sales book is only to record credit sales. The amount entered in the sales book is on behalf of invoices supplied to purchasers, however a copy remains with the firm.
Sales book is also called Sales Journal or Sales Day Book.
Sample Format of Sales Book
|Date||Particulars||Outward Invoice No.||LF||Details||Total (Rs)|
|Date when Invoice prepared||Details of purchase & customer||Invoice No. for sale||Page No. of Debtors’ ledger||Value of goods sold||Actual amt receivable from debtor|
Lite© – Learning Initiative Through Example(s)
Prepare the sales book of Unreal Pvt Ltd. from the following particulars given below,
Jan 7 – Sold 10 Keyboards to ABC Co. for 300 each.
Jan 24 – Sold 5 headphones to XYZ Co. for 200 each.
Sales book for Unreal Pvt Ltd.
|Date||Particulars||Outward Invoice No.||LF.||Details||Total|
|Jan 7||ABC Co. 300×10 Keyboards||3,000||3,000|
|Jan 24||XYZ Co. 200×5 Headphones||1,000||1,000|
How to do Ledger Posting of Sales Book?
After all transactions are posted in the sales book the business needs to post them to the related ledger accounts. Following are the steps that need to be followed to post the amounts from sales book to the ledger,
- Each entry is posted to the debit side of appropriate individual account in the debtor’s ledger at the end of the day, this keeps the accounts up to date.
- The column for “Total” is then summed at the end of each month & posted to ledger.
Journal Entry for Credit Sale
|To Sales A/C||Credit|
Lets say total sundry debtors at the end of a month are 50,000 where credit sales made from A is 30,000 & B is 20,000 during the period.
Here are the 4 ledger entries that will be recorded,
|mm/dd||By Sundry Debtors per Sales Book||50,000|
Sundry Debtors Account
|mm/dd||To Sales A/C||50,000|
|mm/dd||To Sales A/C||30,000|
|mm/dd||To Sales A/C||20,000|