Page 37 - NOTES- CASH BOOK

130 Accountancy

keeper makes entries in the sales journal from one copy of the sales invoice. The
format of the sales joournal is shown in figure 4.8. In the sales journal, one
additional column may be added to record sales tax recovered from the customer
and to be paid to the government within the stipulated time. Periodically, at the
end of each month the amount column is total led and posted to the credit of
sales account in the ledger. Posting to the debit side of individual customer’s
accounts may be made daily.

Sales (Journal) Book
Date Invoice Name of the Customer L.F. Amount
No. (Account to be debited) Rs.

Fig. 4.8 : Format of sales (journal) cash book

For example M/s Koina Supplies sold on credit:
(i) Two water purifiers @ Rs. 2,100 each and five buckets @ Rs 130 each to
M/s Raman Traders (Invoice no. 178 dated April 06, 2017).
(ii) Five road side containers @ Rs 4,200 each to M/s Nutan enterprises
(Invoice no 180 dated April 09, 2017) .
(iii) 100 big buckets @ Rs 850 each to M/s Raman traders (Invoice no. 209,
dated April 28, 2017).
The above stated transactions will be entered in a sales journal as follows:

Books of Koina Suppliers
Sales (Journal) Book
Date Invoice Name of the customer L.F. Amount
No. (Account to be debited) Rs.
2017
April 06 178 Raman Traders 4,850
April 09 180 Nutan Enterprises 21,000
April 28 209 Raman Traders 85,000
April 30 1,10,850

Posting from the sales journal are done to the debit of customer’s accounts
kept in the ledger. Like the purchases journal, individual customer’s accounts
are generally posted daily, with the amount involved. The sales journal is also
totaled periodically (generally monthly), and this total is credited to sales
account in the ledger. The sales (journal) book illustrated above will be posted
in the related ledger account in the following manner:

2018-19