Sales Book

The Sales Book (also called the Sales Journal or Sales Day Book) is the mirror image of the Purchase Book — it records only credit sales of goods dealt in by the business. Cash sales are recorded in the Cash Book, and the credit sale of an asset not meant for resale (e.g. selling an old typewriter) is recorded through the Journal Proper.

Format of the Sales Book

Treatment of Trade Discount and GST: exactly as in the Purchase Book — trade discount is deducted before the taxable value is arrived at and is never shown separately; GST is charged on the taxable value and split into CGST + SGST (or IGST for an inter-state sale). The difference from the Purchase Book is only in DIRECTION: on a sale, the business is the one collecting GST, so:

• the Taxable Value total is posted to the credit of the Sales Account,
• the CGST/SGST totals are posted to the credit of the Output CGST Account / Output SGST Account (a liability — GST collected on behalf of the government, payable to it), and
• each customer's personal account is debited individually with the Net Amount they owe.

Illustration 2 — Preparing a Sales Book

Enter the following credit sales (GST @ 12%, i.e. CGST 6% + SGST 6%, assumed for illustration) in the Sales Book, and show the ledger postings.

• Feb 2 — Sold goods to Anil Traders, list price ₹25,000, trade discount 8%, Invoice No. 501.
• Feb 9 — Sold goods to Vinod & Sons, list price ₹18,000, trade discount 5%, Invoice No. 502.
• Feb 15 — Sold goods to Prakash Stores, list price ₹12,000, no trade discount, Invoice No. 503.

Working: Anil Traders — trade discount = 8% of ₹25,000 = ₹2,000; taxable value = ₹23,000; CGST = ₹1,380; SGST = ₹1,380; net = ₹25,760. Vinod & Sons — trade discount = 5% of ₹18,000 = ₹900; taxable value = ₹17,100; CGST = ₹1,026; SGST = ₹1,026; net = ₹19,152. Prakash Stores — no discount; taxable value = ₹12,000; CGST = ₹720; SGST = ₹720; net = ₹13,440.

Sales Book, for February