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What is the difference between returns inwards and returns outwards? What is double-entry bookkeeping? What is the difference between a debit and a credit? What is a ledger? What is the difference between a book of prime entry and a ledger? Why is the cash book considered both a book of prime entry and a ledger account? How is VAT recorded in the books of prime entry? What is a trade discount and how is it treated in the day books? How do you post the purchases returns day book? What is a remittance advice and how does it relate to the books of prime entry?
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How do you post the sales day book to the ledgers?

Intermediate

Answer

Total the sales day book for the period. Post the total net sales to the credit of the sales account, the total VAT to the credit of the VAT (output) account, and the total gross to the debit of the sales ledger control account. Individually, post each customer's gross invoice to the debit of their personal account in the sales ledger.
Period totals: Net 10,000, VAT 2,000, Gross 12,000
  Dr Sales Ledger Control 12,000
      Cr Sales 10,000
      Cr VAT (output) 2,000
Memorandum: Dr each customer account (gross)
Real-world example At month-end the day book total credits sales and VAT while the control account is debited with the gross figure.

Common follow-ups: Which side does the control account go? | Are individual customer postings part of double entry?

Control Accounts Sales & Purchase Ledgers Books of Prime Entry
All 26 Books of Prime Entry questions