Sales book
Sales book is a subsidiary book maintained to
record credit sale of goods. Goods mean the items in which the business is
dealing. These are meant for regular sale. Cash sale of goods and sale of
property and assets whether for cash or on credit are not recorded in the sales
book. This book is also named as sales day book, sold day book, sales journal
or sale register.
The
preparation of the sales book is similar to that of purchases book. The entries
are made in the sales book on the basis of copies of the invoice sent to the
buyer.
In the date column of the sales book, the date of credit sales is recorded. Particulars column contains the name of party purchasing goods or the party to whom goods have been sold. It also shows the details of goods as regards its quantity, quality, other descriptions and the rate of trade discount allowed. In Ledger Folio (L.F.) column the page number of debtors account in the ledger is recorded for reference. The amount of various items of the goods sold is entered in the details column. Adjustments for trade discount, packing charges, etc., are made in the details column. In the total column, the net amount payable by individual customer is recorded. The total of the amount column is the total credit sales during the period.
1. Posting from sales book
After the
transactions are recorded in the sales book, posting them to ledger involves
two steps:
Step 1: Posting to personal accounts of debtors: Every day, each entry is
posted to the debit side of the respective personal account of the debtor.
Step 2: Posting to Sales account: At the end of the month, the aggregate of the sales is posted to
the credit side of sales account by writing the words ‘By Sundry debtors A/c’.
From the transactions given below, prepare the
sales book of Kumar Stationery for July 2017.
2017
July 5
Sold on
credit to Saravana Traders of Sayalkudi
10 packs of A4 sheets @ Rs. 250 per pack
10 dozens of writing pads @ Rs. 850 per dozen
Less : 10% trade discount for both
July 8
Sold to Raja for cash
15 packs of A4 sheets @ Rs. 250 per pack
July 20
Sold to Mohan & Co. of Mudukulathur
5 white boards @ Rs. 2,200 each
10 dozens of writing pads @ Rs. 850 per dozen
July 23
Sold on credit to Narayanan old motor car for Rs.
5,000
July 28
Sold to Kumaran for cash 15 packets of marker
pens @ Rs. 250 per packet
Note:
·
Sales on 8th July and 28th July will not be
recorded in the sales because they are cash sales.
·
Sale of old motor car on 23rd July will not be
recorded in the sales book, because motor car is an asset for the firm dealing
in stationery.
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