In my previous post, I introduced a subsidiary book.

In today's post, we will be turning our attention to sales journals.

A sales journal is a book of accounts used for recording sales made on credit before posting to the ledger.

In other words, the sales journal is the book of the account used for recording credit sales advanced to customers.

That is, the sales journal is a subsidiary book used to record detailed information about goods sold on credit by a company

Cash sales are not recorded in the sales journal. Instead, they are recorded in the cash book.

Information obtained in the sales invoice/outgoing invoice is used for recording the sales journal. Therefore, the sales invoice is the source document of the sales journal.

The overall total of the sales journal is credited to the sales account in the general ledger and debited to the debtor account in the sales ledger.

It is important to note that credit sales of equipment, machinery and furniture are not recorded in the sales journal.

Only credit sales of the normal goods of a company are entered in the sales journal.

Sales journal is sometimes called sales day book.

Format of Sales Journal

The format of the sales journal is exemplified below:

DateDetailsInvoice numberL.fAmount

A sales journal usually has five columns, namely; date, details, invoice number, L.F and amount columns

1. Date column: The date that a credit sale was made is recorded in the date column of the sales journal. This date is typically the same as the date on the sales invoice

2. Details column: In the sales journal, the details column is used to record the particulars of customers who bought goods on credit.

In most cases, the details column usually contains only the name of the customer.

3. Invoice column: This column is used to enter the sales invoice number relating to a credit sale.

Generally speaking, it is expected that the invoice number entered in the invoice column will be sequential because the invoice numbers of companies are usually pre-numbered and sequential.

4. L.F: L.F stands for Ledger Folio. It is used to enter the page number of the ledger account relating to a particular transaction.

For credit sales of goods, the sales ledger (SL) is used as the ledger account

5. Amount: The amount column is self-explanatory. The amount column of the sales journal is used to record the net amount receivable from customers. 

Example of Sales Journal

The following information relates to Omolola trader for June 2015. Record them in the sales journal.

June 4. sold goods worth €15,000 on credit to Kingsley, invoice number 3006

June 7. Sold goods on credit worth €20,000 to barrack, invoice number 3007

June 10. Sold goods on credit worth €12700 to Samuel, invoice no 3008

June 13. Sold goods of €3000 to Kingsley on credit, invoice no 3009

June 20. Sold goods of €17,000 to James on credit, invoice no 3010.


DateDetailsInvoice Number L.fAmount
June 4Kingsley3006 SL15,000
" 7Barrack3007 SL20,000
" 10Samuel3008 SL12,700
" 13Kingsley3009 SL3,000
" 20James3010 SL17,000
Total posted to the sales a/c GL67,700

There you have it. If you have got questions regarding this, feel free to tell me in the comment box.

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