Page 85 - DCOM101_FINANCIAL_ACCOUNTING_I

Unit 8: Subsidiary Books

4. Invoice No., along with date Notes

5. Signature
Amount (`): The book should illustrate the value of goods/raw materials returned out of credit
purchase.
Steps involved in the Purchase Return Book:
1. Posting the entries of the purchase returns to the individual suppliers' account into the
purchase return journal.
2. The monthly total of the purchase return journal is credited into the purchase return
account.

8.4 Sales Book

It is a book maintained by the enterprise only during the moment of selling the goods on credit.
It is known in other words as a sales journal.

Pro forma of the Sales Book
Date Name of Ledger Outward Invoice No. Details Amount `
the Customer Folio

The sales book normally contains the following components:
Name of the customer: The sales book usually records the name of the buyer who has been sold
the goods or raw materials on credit.
Ledger Folio: The page number where the journal entry is posted/transacted.

Outward Invoice No: This book registers the invoice number of the goods/raw materials sold
out to the buyers on credit.
Amount (`): It is a fundamental document to earmark the value of the goods/raw materials sold
out on credit to the various buyers. It aids the firm in identifying the amount of sales transacted

on credit as well as in collecting the amount of dues from the buyers.
Steps involved in the Sales Book:
1. Sale of the goods/raw materials to the individual buyers are entered on a daily basis.
2. The monthly total of sales book is credited into the sales account of the firm which includes

both the sale transactions of cash as well as credit.
Illustration 2: From the transactions given below prepare the Sales Book of Ram for July 2003.
2003

July 5 Sold on credit to S.S. Traders
10 Chairs@ ` 250 Less 10%
10 Tables@ ` 850 Discount

8 Sold to Raja for cash
15 Chairs@ ` 250

LOVELY PROFESSIONAL UNIVERSITY 79