2. CHAPTER 32 The Sales and Sales Returns books Progression Of “Invoices and Credit Notes Sent” Through The Daybooks And Ledgers This presentation acts as a complement to the textbook

3. 2 R. Delaney Progression Of “ Invoices and Credit Notes Sent ” To Daybooks And Ledgers (1) INVOICE NO. 2 M. MOORE 20 MAIN ST. DUBLIN 4 PH. 01 8213876 TO: JOE SOAP 1 MAIN ST LONGFORD 2/5/11, QTY DESCRIPTION UNIT PRICE TOTAL 10 Overcoats €300 €3,000 TOTAL EX VAT €3,000 LESS 10% TRADE DISCOUNT 300 NET €2,700 VAT @ 20% €540 TOTAL INCL. VAT €3,240 SALES BOOK DATE DETAILS INV. NO. NET VAT TOTAL 2/5/11 J. SOAP 2 2,700 540 3,240 4/5/11 R.RYAN 3 40,000 8,000 48,000 42,700 8,540 51,240 Assume another Invoice, No. 3, was sent to R. Ryan on 4/5/11. This is also shown in the Purchases Book

4. 3 R. Delaney Progression Of “ Invoices and Credit Notes Received ” To Daybooks And Ledgers (2) CREDIT NOTE NO. 2 M. MOORE 20 MAIN ST. DUBLIN 4 PH. 01 8213876 TO: JOE SOAP 1 MAIN ST LONGFORD 6/5/11, QTY DESCRIPTION UNIT PRICE TOTAL 4 TVs. MODEL TV3 €300 €1,200 TOTAL EX VAT €1,200 LESS 10% TRADE DISCOUNT €120 NET €1,080 VAT @ 20% €216 TOTAL INCL. VAT €1,296 SALES RETURNS BOOK DATE DETAILS CR NO. NET VAT TOTAL 6/5/11 J. SOAP 2 1,080 2161,296 9/5/11 R. RYAN 3 4,000 800 4,800 5,080 1,016 6,096 Assume another Credit Note, No. 3, was received from G. Greene on 9/5/11. This is also shown in the Purchases Returns Book

5. 4 R. Delaney 2/5 J. Soap Inv. No. 2 2,700 540 3,240 Net VAT Total 4/5 R.Ryan Inv. No. 3 40,000 8,000 48,000 42,700 8,540 51,240 2/5 To Sales 3,240 J. Soap A/C Goes to Dr. Side because Soap is the receiver of the goods. R. Ryan A/C Goes to Dr. Side because Ryan is the receiver of the goods. SALES BOOK 4/5 To Sales 48,000 6/5 J. Soap Cr. Nt. 2 1,080 216 1,296 Net VAT Total 9/5 R. Ryan Cr. Nt. 3 4,000 800 4,800 9,000 1,016 6,096 SALES RTS. BOOK Sales A/C Goes to Cr. Side because Sales are a gain. 31/3 As per Sales Bk. 42,700 V.A.T. A/C Goes to Cr. Side as this VAT is owed to taxman. 31/5 As per Sales Bk. 8,540 Goes to Cr. Side because Soap is the giver of the goods. 6/5 By Returns 1,296 Goes to Cr. Side because Ryan is the giver of the goods. 9/5 By Returns 4,800 Sales Returns A/C Goes to Dr. Side as Returns reduce gains. 31/5 As per SR Bk9,000 Goes to Dr. Side as it reduces the amount owed. 31/5 As per SR Bk. 1,500 Progression Of “ Invoices and Credit Notes Sent ” To Daybooks And Ledgers (3) THESE ACCOUNTS ARE BALANCED IN THE SAME WAY AS IN THE PREVIOUS SLIDE SHOW