Chapter 12 - Sales Journal and Sales Return Journal


Sales Invoice

A sales invoice is a document sent by the trader to customers showing full details of goods sold to them. A sales invoice can be prepared using the following format:

ABC Textiles Co Ltd

Royal Road, Camp de Masque

Tel : 5999 9999

*Name, Address and contact details of Trader (Owner)


Sales Invoice No: 2020 001

*Invoice Number



Mr. Raphael

Royal Road , Flacq

Tel : 5888 8888

*Name, Address and contact details of customer

3rd April 2020

*Date of transaction



Qty

Description

Unit Price

Total


*Details of goods sold to customer

20

T-Shirts

250

5 000


10

Jeans

400

4 000


10

Hoodies

350

3 500



12 500




Less 10% Trade Discount


1 250




Sales Day Book/ Sales Journal


11 250


*Amount transferred

Terms and conditions : Payment due within 30 days



Sales Day Book

A sales day book is used to record credit sales only. It is prepared from sales invoices sent to customers. It is also known as Sales Journal or Sales Book. The following is a format of a sales day book:


Sales Day Book

Date

Details

Invoice No

Amount ($)

Apr  3

Mr. Raphael

2020 001

11 250

5

Mr. John

2020 002

8 350

12

Mr. Neville

2020 003

6 500


Transfer to Sales / Revenue Account


26 100


The total of the sales journal is posted to the credit side of the sales account in the general ledger. Individual entries in a sales day book are debited to respective credit customer’s account in the sales ledger. (Ledger entries provided below)

Credit Note Sent

This is a document sent to customers showing full details of goods returned by them. It is evidence that goods has been returned by credit customers.

Sales Return day book

A sales return day book is used to records goods returned by credit customers. It is prepared from credit note issued to customers. It is also known as sales return journal/return inwards day book or return inwards journal. It may be prepared as follows:

Sales Return Journal

Date

Details

Amount ($)

Apr  8

Mr. Raphael

 250

13

Mr. John

200

15

Mr. Neville

500


Transfer to Sales Return account

950


At the end of each month, the total of sales return journal is debited to the Return inwards (Sales return)  account in the general ledger. Individual entries in the sales return day book is credited to respective customer’s account in the sales ledger.

The double entries for the sales day book and sale return journal will be as follows:

General Ledger

DR

Sales Account

CR




Apr  30

Sales Day Book

26 100








Sales return Account


Apr 30

Sales return day book

950










Sales Ledger

DR

Mr. Raphael Account

CR

Apr  3

Sales

11 250

Apr 8

Sales return

250








Mr. John Account


Apr  5

Sales

8 350

Apr 13

Sales return

200








Mr. Neville Account


Apr 12

Sales

6 500

Apr 15

Sales return

500