Sales day book is a place for posting sales invoices into the sales ledger and the nominal ledger. This could be done laboriously one by one, but it is better to group them together and cut down the work. This posting medium is usually called the sales day book, though you might find it called the sales journal or some other name. The following is a typical example of a sales day book. However, the design can vary according to individual preference and business circumstances.

Sales day book Format

  • Date: This is the date of each individual invoice.
  • Customer: this is the customer to which each individual invoice is addressed.
  • Invoice no.:  Each invoice must be individually numbered
  • Folio no. : This is the identifying code to each individual sales ledger account.
  • Goods total: this is the total value of each invoice excluding VAT. Sometimes this is further divided to include different totals for different product groups. The example given only shows total sales.
  • VAT:  this is the VAT charged on each individual invoice.
  • Invoice total: this is the total amount of each individual invoice and the amount that the customer has to pay.

Report and Print

A sample of Sales day book in accountingThe columns may be added and the posting done whenever it is convenient to do so. Monthly posting is frequently encountered and in practice there would probably be more than six invoices. The posting to the nominal ledger would be:

Sales account £480.00 credit The sales account will eventually contribute to profit in the profit and loss account.
VAT account £84.00 credit This is a liability account. It is money owed by the business to the government.
Sales ledger £564.00 debit Control account

This is an asset account. It is money owing to the business by customers.

Six individual sales ledger accounts are debited with the total amount of the six individual invoices.
You will notice that the balances of the sales ledger accounts will add up to the value of the sales ledger control account in the nominal ledger.

If you have a computerized system, your records will probably not look like this example. The computer will follow exactly these principles and do the same job, but it will do it more quickly.

Sales day book is one of the most important book for managers and owners of shops to have a clear view of their shop activities per day.

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