Sales Day Book
A Sales Day Book, also known as a Sales Journal or Sales Book, is a specialized accounting journal used to record and track all credit sales of a business. It’s a chronological record of sales invoices (sales on credit) issued by a business before they are posted to the general ledger. Note that it does not record cash sales; those are typically recorded in a separate cash receipts journal.
The Sales Day Book provides a clear view of sales transactions on credit during a specific period (e.g., daily, weekly). Over time, these credit sales entries are then posted or transferred to individual customer ledgers and eventually to the general ledger.
Typical information found in a Sales Day Book includes:
- Date of the transaction
- Invoice number
- Customer name
- Description of items sold
- Amount of the sale
At the end of a particular period, the total of the Sales Day Book provides the cumulative credit sales of the business for that period.
Example of a Sales Day Book
Let’s create a fictional example of a Sales Day Book for a boutique named “Ella’s Fashions.”
Ella’s Fashions – Sales Day Book
Week of August 1st – August 7th
| Date | Invoice No. | Customer Name | Description | Amount ($) |
|---|---|---|---|---|
| Aug 1 | E001 | Janet Smith | 2x Floral Dresses, 1x Handbag | 220 |
| Aug 2 | E002 | Diane Murphy | 1x Leather Jacket, 1x Silk Scarf | 175 |
| Aug 4 | E003 | Lucy Chen | 3x Summer Blouses | 120 |
| Aug 5 | E004 | Mike Thomson | 1x Men’s Wallet, 1x Leather Belt | 80 |
| Aug 6 | E005 | Angela Wright | 2x Knit Sweaters | 110 |
| Aug 7 | E006 | Paul Jenkins | 1x Men’s Suit, 1x Tie | 350 |
|---|---|---|---|---|
| Total for the week | 1,055 |
Based on the Sales Day Book for “Ella’s Fashions” for the week of August 1st – 7th:
- On August 1st, Janet Smith made a purchase on credit which was recorded in invoice number E001. She bought two floral dresses and one handbag, with a total credit sale of $220.
- Similarly, various other credit sales were recorded on their respective dates, with associated invoice numbers, customer names, descriptions, and amounts.
- The total credit sales for the week amounted to $1,055.
At the end of the week, the total credit sales figure of $1,055 would be posted to the general ledger. Additionally, the individual sales amounts would be posted to the respective customer accounts in the accounts receivable sub-ledger.
This Sales Day Book provides “Ella’s Fashions” with an organized way to track and manage its credit sales for the week. It helps ensure accurate record-keeping and that the financial statements will reflect the appropriate revenue figures.
