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.

Sales Ledger Customers Account Debit Credit XX Sales Journal Book of original entry for credit sales General Ledger Customers Account Debit Credit XX Each sales posted separately Total only to Sales Account Posting Credit Sales To The Sales Ledger

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%. discount 25%. May 9 Sold goods on credit to K.Ming $80. No trade discount is allowed. discount is allowed. May24 Sold goods to W.Wang $500 in cash. Click me to see how to do

Sales Ledger Sales Journal 19-8 $ May1 T.Tung (1600x75%) K.Ming 80 W.Wang 19-8 $ May1 Bal b/d Sales $ T.Tung 19-8 $ May1 Bal b/d Sale 1200 K.Ming 19-8 $ May1 Bal b/d Sale $

Dont 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 Ledger Sales Journal 19-8 $ May1 T.Tung (1600x75%) K.Ming 80 W.Wang 19-8 $ May1 Bal b/d Sales $ T.Tung 19-8 $ May1 Bal b/d Sale 1200 K.Ming 19-8 $ May1 Bal b/d Sale $ General Ledger Sales 19-8 $ 31 Total credit sales for the month 1280 May31 Bal c/d $ May31 Bal c/d 1560 May31 Bal c/d 2160 May31 Total credit 1280 sales

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. 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 © Sales account in the general ledger. 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. Please click here to do the exercise

Sales Journal 19-9 $ Jul 5 W.Wing (550x70%) C. Fong ($800x 80%) S. Chan 200 General Ledger Sales 19-9 $ Jul 31 Total for the 1225 month 19-9 $ Jul 31 C. Fong 92 Discount Allowed 31 Total for the month 1225 Here is the suggested answer of Exercise 1 P.1 Your Answer

Sales Ledger T. Wong 19-9 $ Jul 1 Bal b/d Sales 120 Jul 31 Bal c/d $ Jul 1 Bal b/d 120 S. Chan 20 Sales 200 Jul 13 Cash 120 C. Fong 19-9 $ Jul 1 Bal b/d $ 9 Sales 640 Jul 31 Cash 1748 W. Wing Jul 5 Sales 385Jul 31 Bal c/d Discount 92 P.2 31 Bal c/d 200 Continue... 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.