Bookkeeping › Books of Prime Entry

What is the sales day book and what is recorded in it?

Beginner

Answer

The sales day book (sales journal) records credit sales only, listed from sales invoices—date, customer name, invoice number, and amount (net, VAT, gross). Cash sales are not recorded here; they go in the cash book. Periodically the totals are posted: the total to the sales account and VAT account, and individual amounts to customers' accounts in the sales ledger.

Sales Day Book (extract):
  Date  Customer  Inv  Net    VAT   Total
  3/5   A Ltd     101  1,000  200   1,200
  Totals posted: Dr Debtors control; Cr Sales 1,000, VAT 200

Real-world example Only invoiced credit sales appear in the sales day book; a walk-in cash sale is entered in the cash book instead.

Common follow-ups: Are cash sales recorded here? | Where do the totals get posted?

Sales & Purchase Ledgers Control Accounts Books of Prime Entry