SALES BOOK OR SALES JOURNAL
Sales Book or Sales
Journal is a Subsidiary Book or special Journal in which credit sales of goods
dealt in by the firm are recorded. Cash sales are recorded in the Cash Book and
not in the Sales Book. Also, credit sales of items other than goods dealt in by
the firm (e.g., sale of assets) are not recorded in the Sales Book, they are
recorded in Journal Proper. Entries in the Sales Book are on the basis of
invoices issued to the customers with the net amount after trade discount and
charging GST.
Features of Sales Book:
1. Credit sales of goods
dealt in are recorded in the Sales Book.
2. Credit sales of items
other than goods traded in or sale of finished goods by the firm (e.g., sale of
assets) are not recorded in the Sales Book, they are recorded in Journal
Proper.
3. Cash sales are not
recorded in the Sales Book since these are recorded in Cash Book.
4. Entries are recorded on
the basis of invoices.
Ruling of Sales Book or Sales Journal : The ruling of Sales
Book is shown below:
SALES BOOK OR SALES JOURNAL
|
Date (1) |
Particulars (2) |
Invoice (3) |
L.F. (4) |
Details (5) |
Sale value ₹ (6) |
Output CGST (7) |
Output SGST (8) |
Output IGST (9) |
Freight Cartage, Etc. (₹)
(10) |
Total ₹ (11) |
|
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Entries in the Sales Book
are recorded in the same manner as in the Purchases Book. For example, the
particulars column will record the name of the customers to whom goods have
been sold on credit. Entries in the Sales Book are written as follows:
1. Date: The date of transaction is written.
2. Particulars: The name of the purchaser of goods is written along
with the description of goods and a quantity is written.
3. Invoice No.: Invoice number of goods sold is written.
4. Ledger Folio (L.F.): At the time of entries being posted
into Ledger Accounts, the page number of the ledger is written.
5. Details: The amount in respect of each article is written. If trade
discount is allowed to the purchaser of goods, it is deducted from the gross
amount. Thereafter, GST (IGST or CGST and SGST) is charged
6. Sales Value: The value of sales of the goods is written in this
column.
7. Output CGST. The amount of CGST charged on intra-state (i.e.,
within the state) sales is written.
8. Output SGST. The amount of SGST charged on intra-state (i.e.,
within the state) sales is written.
9. Output IGST. The amount of IGST charged on inter-state (Le.,
outside the state) sales is written.
10. Expenses: The expenses towards freight, cartage and/or packing
material, etc., charged from the customer are written.
11. Total: The amount of invoice including GST (IGST or CGST and SGST)
charged and expenses is written.
Difference between Sales Book and Sales Account
|
Basic |
Sales Book |
Sales Account |
|
1. Part |
It is part of Journal Book |
It is part of Ledger |
|
2. Format |
Like a ledger account, it
does not have debit and credit columns |
It has debit and credit
columns. |
|
3. Contents |
Only credit sales of goods
are recorded |
Credit as well as cash
sales of goods are recorded. |
|
4. Amount |
Total amount of Sales Book
is posted to the Sales Account periodically |
Balance in the account is
transferred to the Trading Account. |
Utilities of Sales Book
1. It reduces the volume
of work required to pass Journal entry for each credit sale.
2. Ledger posting becomes
easier since all credit sales are recorded in a single book.
3. It becomes easier to
check whether the prices charged are according to the catalogue or not.
4. It is possible to have
a periodic total of credit sale of goods.
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