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Previously, we studied about “ Purchase Day Book Format ”, but, here we will study about Sales Day Book Format. What is Sales Day Book or Journal? A book which is used to maintain Business Transactions related to Credit Sales i.e., when the company sold goods to customer ( Accounts Receivable / Debtor ) o n c redit  b asis. It does not deal with Cash Sales which is recorded only in Cash Book . When goods are sold, an invoice is issued to both sellers and sellers for their own records. Sales Day Book Format / Sales Jour nal Format Date            Particulars / Descriptions                                   L/F             Debit        Credit                                                                                                                      Rs.            Rs. The Sales Day Journal that records only Credit Sales Transactions includes the following: 1. Date on which Business Transactions take plac

Purchase Day Book (Purc hase Journal or Purchase Register)  is used to record all Credit Purchases, i.e., Goods Purchased on Credit Basis from Our Supplier ( Accounts Payable / Creditor ). This Book does not deal with Cash Purchases as the main purpose of this Book of account is to deal with Credit Purchases that is why it is called Purchase Special Journal. You May also be Read Out, " Sales Day Book Format " In this Purchase Ledger, we record all Business Transactions related to Credit Purchases occurred on daily basis. When Credit Purchases Transactions take place, we record it in an invoice called Purchase Invoice. The business which is purchasing the goods from supplier called it as Purchase Invoice but for Seller poi nt of view it is a Sales Invoice. Format / Sample / Performa Purchase Day Book consists of a Date, Particulars, Ledger Folio and Debit & Credit Columns. The total of the purchases day book is

Journalizing An Entry VS Posting An Entry Here, we will make a comparison between Journalizing an Entry in the Journal and Posting An Entry in the Ledger . 1. In Journalizing an Entry, we record Business Transaction From Evidence Documents like Voucher or Invoice to Journal Chronologically (Date-Wise) while in Posting an Entry transferred Journal Entries to Ledger and it is called Posting and it takes place in Ledger of Business. Note: E ntry means recording Business Transactions in concerned Books of Accounts (Journal & Ledger).               You Can Also Check Out, “ Difference Between Journal And Journalizing ” 2. Journalizing an Entry is called Journal Entry while Posting an Entry is known as Ledger Entry. Also Check Out, “ What is Journal Entry I n Accou nti ng ” 3. For Example, Mr. A Sold Goods Worth Rs. 50000 For Cash. The above is a Business Transaction and we this record this transaction in the B

Journal Versus Journalizing Here, we will take into account the comparison between Journal And Journalizing .               You May Also Be Read, “ Difference Between Special Journal And Journal Proper ” 1. Journal is the Book of Original Entry while Journalizing or Journal Entry is the process of recording Business Transactions from Voucher or Invoice Documents into the Book or Journal of the business Chronologically (Date-Wise). 2. The process of Journalizing is done in the Journal of the business, so Journalizing is the important part of Journal, i.e., Recording of Business Transactions From Voucher or Invoice Documents. So, Journal is the Book of Original Entry where the process of recording Business Transactions takes place in order of date that these are transferred from evidence docume nts like Voucher or an Invoice is called Journalizing.

Here, we will focus on Allowance Method VS Direct Write Off Method . 1. Under Allowance Approach, we estimate for Uncollectible Accounts and adjusting the actual sales with estimated sales at the End of Current Accounting Period in order to know the exact real sales made by business while under Direct Write Off Method, we does not follow any estimation of Unpaid dues and only recognize these  Uncollectible Accounts Expense when these become Actual Bad Debts that needed to be Written Off. 2. Allowance Method follows Matching Principle Gaap i.e., matching our sales with Uncollectible Accounts Expense during the Current Accounting Cycle while Direct Off Method fails to follow Matching Principle as there is no record of estimation of Uncollectible Accounts Expense. 3. Allowance Method is widely used by most of the companies where goods sold on both Cash Basis and Accrual Basis of Accounting while Direct Write Off Method is used by those com

Previously, we studied about, “ Allowance Method for Uncollectible Accounts ”, but, here we will concentrate on this important topic of Accounting i.e., Direct Write Off Method where we sold goods to our customer on Credit Basis and does not make provision or create an estimation or Allowance for Uncollectible Accounts . Under this method, the company does not make Adjusting Entry for allowance for doubtful Accounts at the end of Current Accounting Period. When it is sure that the company can not collect its collectibles or in other words Uncollectible Accounts Expense become Actual Bad Debts , then the company recognizes such Loss to their Financial Statements as Bad Debts Written Off and pass following Accounting Journal Entry in its Journal : Direct Write off Method Journal Entry                                                Uncollectible Accounts Expense a/c       XXX                                              

Under Allowance Method, we estimate (based on Accounts Receivable Aging Report ) that a percentage of Accounts Receivable may not be recovered from our customers. So we record the Accounts Receivable at net realizable value (Calculated by deducting the Closing Balance of Allowance for Doubtful Accounts From Closing Balance of Accounts Receivable) on Balance Sheet in order to give true and fair view of Financial Statements to the Users of Financial Statements . Under this approach, we basically follow Matching Principle Gaap  which is the requireme nt of Generally Accepted Accounting Principles (GAAP)   that matched our expenses with revenues, i.e., Matching Sales with Uncollectible Accounts Expense. This Method is also K nown as Provision Method, Projected Write Off Method or Specialized Write Off Method. For Example, if we sold goods worth Rs. 30000 to Mr. A on 1 st July, 2108, unpaid amount collectible in 2 months, then based on past experiences, we estimat

Here we will study about the some of the main differences between General Ledger And Trial Balance . 1. Ledger is the Primary, Main or King of Books of Accounts where all the accounts are posted from Journal or Book in classified form but Trial Balance shows Arithmetic Accuracy of the Balances of Accounts shown on Debit and Credit side and helpful in finding errors in order to rectify these mistakes and errors later on. So, it  is the book of final entry i.e., all the closing balances of different kinds of accounts are transferred to ledger in a classified and separate form. Examples are Accounts Receivable Ledger , Accounts Payable Ledger , Sales Ledger, Purchases Ledger, etc., while a Trial Balance shows the arithmetic accuracy of closing balances of different accounts by showing debit accounts lists with credit accounts lists for the period. 2. A Ledger shows the Business Transactions and Balance of An Account separately while Trial Balance sho