Sales
Journal
Do you know what is
Sales Journal?
Yes, I know of course.
It is a list recording all credit
sales for each period.
Posting Credit Sales To The Sales Ledger
Each sales
posted
separately
Sales Journal
Book of original entry
for credit sales
Sales Ledger
Customer’s Account
Debit Credit
XX
Total only to
Sales Account
General Ledger
Customer’s Account
Debit Credit
XX
There are many other points you need
to remember:
1.Cash sales are not entered in the sales journal.
2.No entry is made for trade discounts in the
double entry accounts.
3.Trade discount is given to encourage people
to buy in larger quantities.
Here is an example of sales journal:
The following balances were outstanding by debtors on
30 April 19-8:
W. Wang Ltd $840; T. Tung $360 ; K. Ming $2080
The following transactions took place during May 19-8:
May 1 Sold goods on credit to T.Tung for $1600 less trade
discount 25%.
May 9 Sold goods on credit to K.Ming $80. No trade
discount is allowed.
May24 Sold goods to W.Wang $500 in cash.
Click me to see how
to do
Sales Journal
19-8
May1 T.Tung (1600x75%)
9 K.Ming
$
1200
80
Sales Ledger
W.Wang
19-8
$ 19-8
May1 Bal b/d 840
24 Sales 500
K.Ming
$
19-8
$ 19-8
May1 Bal b/d 2080
9 Sale
80
T.Tung
19-8
$
May1 Bal b/d 360
1 Sale 1200
$
Don’t forget to balance off the
accounts at the end of the month.
Also, the total of the sales journal
should be transferred to the
credit of the sales account.
Click to next page to see how to do it.
Sales Journal
19-8
May1 T.Tung (1600x75%)
9 K.Ming
31 Total credit sales for the month
Sales Ledger
W.Wang
$
1200
80
1280
K.Ming
19-8
$ 19-8
$
19-8
$ 19-8
$
May1 Bal b/d 840 May31 Bal c/d 1340 May1 Bal b/d 2080 May31 Bal c/d 2160
9 Sale
80
24 Sales 500
2160
2160
1340
1340
General Ledger
T.Tung
19-8
$ 19-8
$
May1 Bal b/d 360 May31 Bal c/d 1560
1 Sale 1200
1560
1560
Sales
19-8
May31 Total credit
sales
$
1280
After doing the example, I think you
will know more about sales journal.
The next page will have a simple
exercise. I hope you will learn how
to do it.
The following transactions on 30 June 19-9 were as follows:
T. Wong Ltd $960; S.Chan $120; C. Fong Ltd $1200
The following transactions took place in the month of July 19-9:
Jul 5 Sold goods on credit to W.Wing for $550 less 30% trade discount.
9 Sold goods on credit to C. Fong for $800 less 20% trade discount.
13 S.Chan paid us the amount he owed us by cash.
17 Sold goods to T. Wong for $120 in cash.
20 Sold goods on credit to S.Chan for $200. No discount was allowed.
31 C. Fong paid us the amount owing by cheque less 5% cash discount.
You are required to show the following for the month of July 19-9:
(a) Sales ledger written up and the accounts balance off.
(b) Sales journal
Please click here
© Sales account in the general ledger.
to do the exercise
Here is the suggested answer of Exercise 1
P.1
Sales Journal
19-9
Jul 5
9
20
31
$
385
640
200
1225
W.Wing (550x70%)
C. Fong ($800x 80%)
S. Chan
Total for the month
General Ledger
Sales
Discount Allowed
19-9
$
Jul 31 Total for the 1225
19-9
Jul 31 C. Fong
month
Your Answer
$
92
P.2
Continue...
Sales Ledger
T. Wong
C. Fong
19-9
$
19-9
$
19-9
$
19-9
$
Jul 1 Bal b/d 960 Jul 31 Bal c/d 1080 Jul 1 Bal b/d 1200 Jul 31 Cash 1748
9 Sales 640
17 Sales 120
Discount 92
1080
1080
1840
1840
S. Chan
19-9
$
19-9
$
Jul 1 Bal b/d 120 Jul 13 Cash 120
20 Sales 200
31 Bal c/d 200
320
320
W. Wing
19-9
$
19-9
$
Jul 5 Sales 385 Jul 31 Bal c/d 385
Your Answer
Do you find Exercise 1 very easy?
I think you must know how to do it and get a
good result. If not, nevermind. Just practice more
and you will improve eventually.