CHAPTER 32 The Sales and Sales Returns books

CHAPTER 32 The Sales and Sales Returns books Progression Of “Invoices and Credit Notes Sent” Through The Daybooks And Ledgers This presentation acts as a complement to the textbook

Progression Of “Invoices and Credit Notes Sent” To Daybooks And Ledgers (1) INVOICE NO. 2 M. MOORE 20 MAIN ST. DUBLIN 4 PH. 01 8213876 TO: JOE SOAP 1 MAIN ST LONGFORD , DATE 2/5/11 DETAILS J. SOAP 4/5/11 R. RYAN SALES BOOK INV. NO. NET VAT 2 2, 700 540 3 40, 000 8, 000 42, 700 8, 540 TOTAL 3, 240 48, 000 51, 240 2/5/11 QTY DESCRIPTION 10 Overcoats UNIT PRICE TOTAL € 300 € 3, 000 TOTAL EX VAT € 3, 000 LESS 10% TRADE DISCOUNT 300 NET € 2, 700 VAT @ 20% € 540 TOTAL INCL. VAT € 3, 240 Assume another Invoice , No. 3, was sent to R. Ryan on 4/5/11. This is also shown in the Purchases Book

Progression Of “Invoices and Credit Notes Received” To Daybooks And Ledgers (2) SALES RETURNS BOOK CREDIT NOTE NO. 2 M. MOORE 20 MAIN ST. DUBLIN 4 PH. 01 8213876 TO: JOE SOAP 1 MAIN ST LONGFORD , DATE 6/5/11 DETAILS J. SOAP 9/5/11 R. RYAN CR NO. NET VAT 2 1, 080 216 3 4, 000 5, 080 800 1, 016 TOTAL 1, 296 4, 800 6, 096 6/5/11 QTY DESCRIPTION 4 TVs. MODEL TV 3 UNIT PRICE TOTAL € 300 € 1, 200 TOTAL EX VAT € 1, 200 LESS 10% TRADE DISCOUNT € 120 NET € 1, 080 VAT @ 20% € 216 TOTAL INCL. VAT € 1, 296 Assume another Credit Note , No. 3, was received from G. Greene on 9/5/11. This is also shown in the Purchases Returns Book

R. Delaney Progression Of “Invoices and Credit Notes Sent” To Daybooks And Ledgers (3) SALES BOOK Net 2/5 J. Soap Inv. No. 2 2, 700 VAT Total 540 3, 240 4/5 R. Ryan Inv. No. 3 40, 000 8, 000 42, 700 8, 540 51, 240 THESE ACCOUNTS ARE BALANCED IN THE SAME WAY AS IN THE PREVIOUS SLIDE SHOW SALES RTS. BOOK Net VAT Total 6/5 J. Soap Cr. Nt. 2 1, 080 216 1, 296 9/5 R. Ryan Cr. Nt. 3 4, 000 800 4, 800 9, 000 1, 016 6, 096 4 J. Soap A/C Dr. Side 3, 240 2/5 Goes Toto Sales because Soap is the receiver of the goods. 6/5 By Returns Goes to Cr. Side 1, 296 because Soap is the giver of the goods. R. Ryan A/C Returns 4/5 Goes To Sales to Dr. Side 48, 000 9/5 By Goes to Cr. Side 4, 800 because Ryan is the receiver of the goods. giver of the goods. Sales A/C 31/3 Goes. As to per Cr. Sales Side because Bk. 42, 700 Sales are a gain. V. A. T. A/C 31/5 Goes As per to Dr. SRSide Bk. as 1, 500 it 31/5 Goes As per to Sales Cr. Side Bk. as 8, 540 this reduces the amount owed. VAT is owed to taxman. Sales Returns A/C Goes Dr. as 31/5 As to per SRSide Bk 9, 000 Returns reduce gains.