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 |
