Sales day book and sales ledger

7 important questions on Sales day book and sales ledger

Why are there no details recorded from a customer trough credit card payments?

Because the debtor that is created is the credit card company and not the customer.

What is a purchase and sales invoice?

A document to the buyer or selling showing full details of the goods sold/bought and the prices of the goods.

What does a sales day book contain?

This book is merely a list relating to each credit sale:
- Date
- Name of customer
- Invoice number
- Folio column
- Final amount of invoice
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What is a trade discount?

Different discounts given to different kind of customers.

How are trade discounts recorded?

Trade discounts are simply a way of calculating sales prices, thus no entry for trade discounts should be made in the double entry records, nor in the sales day book.

What is the difference between trade discounts and cash discounts?

- Trade discounts: never shown in double entry accounts, nor in the income statement.
- Cash discounts: always shown in double entry accounts and in the profit and loss part of the income statement. 

How should credit control be implemented?

1. A credit limit should be set for each debtor.
2. As soon as the payment date set by the seller has been reached, a check should be made to verify whether the debtor has paid the amount due.
3. Where payment is not forthcoming, after investigation it may be necessary to take legal action to sue the customer for the debt.
4. It is important that the customer is aware of what will happen if the amount due is not paid by the deadline set by the seller.

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