The Sales Day Book & Sales Ledger.pptx

The sales day book is a manually-maintained ledger in which is recorded the key detailed information for each individual credit sale to a customer. It includes the customer name, invoice number, invoice date, and invoice amount. This information is usually added to the sales day book at the end of each business day, based on the company's copies of all customer invoices issued.

The daily total of the sales listed in the sales day book is then transferred into the sales ledger. Thus, the most detailed recordation of credit sales is the sales day book, with only daily totals of credit sales appearing in the sales ledger.

The sales day book is only used in manual accounting systems. It is not used in computerized accounting systems, since accounting software automatically stores and aggregates all customer invoices prepared through the computer system; there is no need to prepare a sales day book.

1. Financial Accounting TOPIC 6 The Sales Day Book & Sales Ledger CIK NURUL NAJIHAH KHAIRUDIN

2. Cash Sales What is cash sales? When goods sold are paid immediately, they are described as CASH SALES . ( Apabila barang yang dijual dibayar dengan segera , transaksi itu adalah “ Jualan Tunai ”) It includes the payment made by cash, cheque or transfer of funds by the customers’ bank account into the seller’s bank account. ( Jualan tunai termasuklah transaksi yang melibatkan pembayaran secara tunai , dengan cek mahupun dengan pemindahan dana dari akaun bank pelanggan kepada akaun bank penjual ).

3. In sales day book, the cash sales transactions are not included. (Di dalam buku rekod jualan , transaksi jualan tunai adalah tidak terlibat ). The sales day book are only used for credit transactions. ( Buku rekod jualan hanya digunakan untuk transaksi secara kredit atau hutang ).

4. Making Entries in The Sales Day Book There is a list of details relating to each credit sales: Date Name of customer Invoice number Final amount of invoice

5. Example of Sales Invoice

6. Example of Sales Day Book Sales Day Book 2009 Invoice No. Folio Amount (RM) Sept 1 D Poole 16554 560 8 T Cockburn 16555 1,640 28 C Carter 16556 220 30 D Stevens & Co 16557 1,110 3,520

7. Recap… When goods are paid for immediately they are described as ‘_________ sales’. We have received the ___________ instantly from them. Therefore we do not need to enter the __________________ in to the sales day book. The sales day _________ is only for credit transactions. When _____________ pay by credit card, this transaction is treated as if it were a cash transaction. Don’t get confused! Most business _________ credit when selling their products to other businesses. In each transaction, the selling business will give the _______________ business a document called an _______________. transaction / Cash / money / customers / book / buying / give / invoice

8. Invoice Invoice Invoice Sales Ledger A’s a/c Sales X B’s a/c Sales X C’s a/c Sales X Step 1 Step 2 Step 3 Sales Day Book Goods Total A B C XXX XXX XXX XXX XXX XXX General Ledger Sales a/c Credit Sales For month XX Step 4 A+B+C (TOTAL )

9. Posting credit sales Once the invoices have been entered into the Sales day book the next step is to put each invoice into the individual customer’s account in the sales ledger. At the end of each month the totals in the sales book are then posted to the ‘Sales Account’ in the General Ledger. Debit each customer’s a/c in the sales ledger with the total of each individual invoice (the goods go ‘IN’ to their a/c) Credit the sales a/c with the total net sales (the goods go out of the business )

10. Trade discounts A trade discount is a simple way of calculating sales prices, no double entry for trade discounts should be made. They are different from cash discount because: Trade discounts never show in double entry accounts, nor in the income statement Cash discounts always show in double entry accounts and in the profit & loss account (income statement).

11. Example of Posting Credit Sales Sales Ledger D Poole 2009 Folio RM Sept 1 Sales SB 26 560 Sales Day Book 2009 Invoice No. Folio Amount (RM) Sept 1 D Poole 16554 SL 12 560 8 T Cockburn 16555 SL 39 1,640 28 C Carter 16556 SL 59 220 30 D Stevens & Co 16557 SL 60 1,110 GL 44 3,520 (page 26) (page 12)

12. T Cockburn 2009 Folio RM Sept 8 Sales SB 26 1,640 C Carter 2009 Folio RM Sept 28 Sales SB 26 220 D Stevens & Co 2009 Folio RM Sept 30 Sales SB 26 1,110 General Ledger Sales 2009 Folio RM Sept 30 Credit sales for the month SB 26 3,520 (page 39) (page 59) (page 60) (page 44)

13. Credit control If debtors are not paying the amount they owe, our business could run short on cash. This could be very bad because we might not be able to pay our creditors. therefore: to ensure this doesn’t become a problem : Each debtor is given a credit maximum, this is the a specific limit on the total amount of money they can owe us at any one time, this will depend on many factors such as the size and risk of the business. Set a date for the payment to be made and stick to it if payment still isn't made, take the appropriate legal action, i.e sue the customer. Keep the customer up dated regularly with how much they owe, and the consequences of not paying.

14. Thank You!