Recording of Transactions-II

of the invoice are recorded in the sales journal. Other details about the sales transaction including terms of payment are available in the invoice. In fact, two or more than two copies of a sales invoice are prepared for each sale. The book keeper makes entries in the sales journal from one copy of the sales invoice.

The format of the sales joournal is shown in figure . . 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 Invoice Name of the Customer No. (Account to be debited) Fig. .

: Format of sales (journal) cash book For example M/s Koina Supplies sold on credit: Two water purifiers @ Rs. , each and five buckets @ Rs each to M/s Raman Traders (Invoice no. dated April , ). Five road side containers @ Rs , each to M/s Nutan enterprises (Invoice no dated April , ) .

(iii) big buckets @ Rs each to M/s Raman traders (Invoice no. , dated April , ).