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Sales Journal / Sales Day Book

The sales journal also known as sales day book or sales book records in chronological order all the sales transactions made on credit to customers. Entries made in the journal or book lists all the sales invoices sent out to customers each day. The invoice is a sales invoice to the seller, but merely an invoice to the customer. It contains details and prices of the goods sold. Invoices are sent out to customers each day. The seller retains one or more copies of the sales invoice from which the sales information is recorded on the sales journal regardless of when the payment will be received.

Cash sales when goods are paid for immediately by cash are not entered in the sales journal as payments for the goods sold have already been received, and the seller does not have to keep the particulars of the customer, and about the goods sold.

The sales journal is unlike the debit and credit T-account format found in the ledger. The sales journal has a number of columns with typical column headings such as date, invoice number, names of customer, folio number, and total value of the invoice. There may also be columns for account receivable, sales, and sales tax. Every line in the sales journal that has been written up must have equal debit and credit totals.

An example of a sales journal:

Date

Invoice No.

Customer

Folio

A/c Receivable

(Dr)

Sales

(Cr)


Sales Tax

(Cr)

















































Posting to the ledgers

Each day after the sales information is recorded in the sales journal, it is used to update the individual customer’s account.The columns in the sales journal are totalled at the end of a period, usually a month. The total value of the invoices is the total credit sales achieved in the period. The following postings take place.

  1. The individual sales journal entries are posted to the respective customers’ accounts so that individual debt remains updated at all time.
  2. At the end of the accounting period, the total of the sales journal is posted to the credit side of the sales account in the general ledger and debited to the accounts receivable in the same ledger.

The following is a format of a sales journal or sales day book and how the entries are made

Date

Invoice

No.

Particulars

Folio

No.

Invoiced

Amount

20XX
Jul 01
"  11
"  22
"  30


00111
00112
00113
00114





Appleby Picking & Co
Bear Hugging Trading
Candy Many Store
David Goliath



SL10*
SL12
SL16
SL21


$
400
200
500
100




GL35**

1,200

*SL10 = Sales Ledger Page 10 / **General Ledger Page 35



Postings from Sales Journal:

General Ledger (Page 35)

Sales Account





20XX
Jul. 31


Per Sales Book


SB45"

$
1,200

"SB45 = Sales Book Page 45


Sales Ledger

Appleby Picking & Co

20XX
Jul. 01


Sales


SB45

$
400







Bear Hugging Trading

20XX
Jul. 11


Sales


SB45

$
200







Candy Many Store

20XX
Jul. 22


To Sales


SB45

$
500







David Goliath

20XX
Jul. 30


To Sales


SB45

$
100








For service offered on credit, the journal format is a lot simpler.

The amounts of 350 and 550 are debited to their respective accounts in the sales ledger as soon as the work is completed and invoice issued. On May 31st the total of 990 is debited to the accounts receivable in the general ledger.

Date Invoice No Debtor Folio Amount Work done
May 12 98701 Feather & Sons
350 Fixing leaking pipes
May 24 98702 Mot Motor Workshop
550 Fitting water pipes








Total
900


The sales journal may have more than one sale column to show the sale of different products. For example, a construction supplier may have columns for electric drills, circular saw, air compressor, generator, etc.


The sales journal of a tile dealer

Date Invoice Customer Folio A/c Rec'ble Sales Stone Marble Granite Ceramic
20XX








Apr 01 00701 A Ann SL01 1,540 1,540 220 620 300 400
"  03 00702 B Bean SL03 1,150 1,150
280 220 650
"  06 00703 C Cain SL05 1,050 1,050 120
480 450
"  15 00704 D Dan SL08 1,000 1,000 330 430 240
"  19 00705 E Eden SL12 1.300 1,300
300 500 500
"  23 00706 C Cain SL05 1,800 1,800 400 500 300 600
"  29 00707 B Bean SL03 1,660 1,660 380 680 600











9,500 9,500 1,450 2,810 2,640 2,600



Last Updated (Friday, 10 September 2010 19:41)