Sales books and the journal proper

The sales book records only goods sold on credit, copied from the sales invoices. Cash sales go in the cash book, and selling an old asset (like furniture) on credit goes in the journal proper. Example: 2 water purifiers @ ₹2,100 and 5 buckets @ ₹130 = 4,200 + 650 = ₹4,850.

Each customer's account is debited (they owe us) as the sales happen, and the book's total is credited to the Sales account at the end of the month.

Goods sent back by customers go in the sales return book. The seller sends a credit note ("we have credited your account"), and that is the source document. Each customer is credited; the total is debited to the Sales Returns account. Remember: the seller writes the credit note, the buyer writes the debit note.

The journal proper catches everything that fits no special book. Common examples:

• Opening entry at the start of a year, and closing, transfer, adjustment and rectification (error-correcting) entries.
• Assets bought or sold on credit: plant bought on credit from Amar: Plant A/c Dr, To Amar.
• Expenses still unpaid: salary for March ₹4,500 outstanding: Salary A/c Dr, To Outstanding Salary.
• Goods leaving other than by sale: goods taken by the owner (Drawings A/c Dr, To Purchases), goods given as free samples (Advertisement A/c Dr, To Purchases), goods lost by fire.
• Depreciation: 10% on furniture of ₹15,000: Depreciation A/c Dr ₹1,500, To Furniture.