You must have read our article on Sales Journal in our previous article, in this article Assignment Help is going to discuss the management and examples of sales journal.
How to manage sale journal entries?
Whenever an organization makes financial transactions, a journal entry is passed by the bookkeeper of the accounting software used by the company to record such transactions. These transactions are either included in the special journal or the general journal, depending upon the type of account affected by the transaction. One of the widely used special journals is the sales journal. Other special journals are cash receipts and purchase journals. When the sales are made in cash, the transaction has a direct impact on the cash receipt journal and when the sales are made in credit, the transaction has a direct impact on the accounts receivable. Thus, these journal entries are recorded based on the double-entry system of financial accounting.
All the sale journal entries are recorded in the debt and the credit format which are arranged according to the date of occurrence. The information from the sales is then transferred into the general ledger, which is used for the preparation of the trial balance.
All the sale journal entries of an organization are recorded in the specified format which has the following important columns:
- Account to be debited- One of the columns in the sale journal entry format include the accounts which need to be debited to record the transactions. This column will thus include the name of the customers whose accounts are maintained by the company in accounts receivable.
- Date- The format for recording the sale journal entries include one column for a date. It will include the date on which the sale invoice is generated for the sale.
- Sale Invoice Number- In one of the columns for recording sale journal entries, the sale invoice number is recorded.
- Accounts Receivable- the format for recording the sale journal entries include a column for accounts receivable. The amount receivable from the customer is mentioned in this column. The accounts receivable account is debited in the general ledger and the sales account is credited.
- Inventory and the cost of goods sold- The format for sales journal entries include a column for inventory and cost of goods sold. It includes the amount related to the cost of production of the product sold by the company. This account is debited in the general ledger and inventory account is credited.
- Post reference number- The format for recording the sale journal entries include a column for post reference number. The transactions related with the sales are included in the respective accounts daily by the bookkeeper. Thus, this column helps in entering the account number of the individual accounts, for future reference of the entries.
If you need online assignment writing service on management and other topics, please feel free to get in touch with our experts, they will help you in getting good grades.