Books of Prime Entry

Sales Day Book

Depending on the size of the company, there can be dozens to thousands of sale transactions in a day. Recording all these transactions in a journal and then posting it to individual ledger accounts can get quite tiresome and time-consuming. Hence we take the help of a type of subsidiary book known as the sales day book.

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Sales Day Book

Sales day book is also known as a sales book, sales journal, sold book etc. It is a subsidiary book, i.e. a book of original entry. It is a manually maintained account, with the purpose of recording all credit sales of the business in one place.

This means all the sales of the firm done on credit are recorded in the sales day book. No cash sales will be recorded here, they are recorded in the cash book. And only the sale of goods will be recorded here.

So if the firm sells any asset or investment on credit, these transactions are recorded in the journal proper not the sales book.

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Learn more about Journals Functions and Advantages here in detail.

Format of Sales Day Book

Sales Day Book

Just like the purchase day book, the sales day book also has a similar format of five columns. The first column is for the date of the credit sale transaction.

In the second column, we record the name of the buyer with other information about the sale. This includes the quantities, rates, discounts if any etc.

The third column is for the invoice number reference. The fourth column is the Ledger Folio number. And finally, the fifth column is for the net amount of the credit transaction.

These amounts are totaled at the end of the day, week, month etc. This figure is posted in the Ledger account. And each individual buyer’s ledger is posted with the amount of money they own the firm at the end of the said period.

Illustrated Examples for Sales Day Book

Q: From the following transactions make the sales day book and the necessary ledger accounts for ABC and Co.

  • Sold goods to X for 600/-
  • A credit sale of 10 units to Y for 35/- per unit
  • Sold 50 units to Z for 1350/- inclusive of 10% cash discount
  • Q bought units worth 500/- on credit


Sales Day Book

Date Buyer Names Invoice LF Amount
01/01 X 600/-
02/01 Y (10 × 35) 350/-
03/01 Q 500/-
Total 1450/-

Note that the goods sold to Z will not be a part of the sales book as the transaction is a cash transaction. So that transaction will be recorded in the cash book.

X’s Account

Date Particulars Amount Date Particulars Amount
01/01 To Sales Acc 600

Y’s Account

Date Particulars Amount Date Particulars Amount
01/01 To Sales Acc 350

Q’s Account

Date Particulars Amount Date Particulars Amount
01/01 To Sales Acc 500

Solved Questions for Sales Day Book

Q: What is a sales return book?

Ans: Sometimes the goods sold by the organization are returned due to a variety of reasons like poor quality, incorrect specifications, wrong quantities etc. These are known as return inwards. An organization where such returns are frequent maintain a separate subsidiary book to record these return inwards. This is known as sales return books.

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2 responses to “Journal – Functions and Advantages”

  1. Zarrar Hasan says:

    Sir I’m pursuing b. Com last year student wt i do sir any diploma course any job please tell

  2. degefu says:

    for the past several years johnson has operated apartime consulting business from his home .As of april 1,2006 johnson decided

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