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

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

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.