ZIMSEC O Level Principles of Accounts Notes: Making entries in the Sales Ledger

  • In this example we will make entries into the Sales Ledger, Cash Book and General Ledger
  • We will be skipping the books of original entry
  • Although this is not how things are done in practice
  • Examination/Exercise question might ask you to make double entries in the Sales Ledger without asking you to use the Sales Day Book
  • You should note that in these instances it will do you no good to create a Sales Day Book as no marks will be awarded for its preparation

The following transaction took place in Tatenda Maukazuva’s business for the month of July

1 Credit sales to B Havadi $310
2 Sold goods worth $1300 cash
3 Credit sales to T Fuza $285
5 B Havadi paid $300 cash in full settlement of his account
6 Credit sales to L Mataure $38
7 Sold goods worth $2000 cash to B Havadi
10 Credit sales to B Havadi $74
17 Credit sales to H Hore $534
19 Credit sales to J Nyanga $92
27 Credit sales to T Mataure $44
31 Credit sales to B Havadi $112
31 H Hore paid us $534 using a bank transfer


Sales Ledger
DRB Havadi AccountCr
1 JulSales3105 JulCash300
10 JulSales745 JulDiscount10
31 JulSales112
T Fuza Account
3 JulSales285
L Mataure Account
6 JulSales38
T Mataure Account
27 JulSales44
H Hore Account
17 JulSales53431 JulBank534
J Nyanga Account
19 JulSales92
Cash Book
2 JulSales1300
5 JulB Havadi10300
7 JulSales2000
31 JulH Hore534
General Ledger
Sales Account
1 JulB Havadi310
2 JulCash1300
3 JulT Fuza285
6 JulL Mataure38
7 JulCash2000
10 JulB Havadi74
17 JulH Hore534
19 JulJ Nyanga92
27 JulT Mataure44
31 JulB Havadi112
Discount Allowed Account
31 JulMonthly total10
  • You will note that we have recorded the 7 July transaction to B Havadi as a cash sale rather than adding it to his account in the Sales Ledger. This is because only Credit Sales are recorded in the Sales Ledger
  • You will also note that we have credited the Sales Account with each sale. That is acceptable. It would also be acceptable to simply transfer the total credit sales for the month to the credit side of the sales account. Such a total would not include cash sales as shown below
General Ledger
Sales Account
2 JulCash1300
7 JulCash2000
31 JulTotal credit sales for the month1489
  • In these case credit sales are recorded in the Sales Day Book (which you don’t have to prepare), only Cash Sales are recorded in Sales Account in the interim. The total of credit sales for the month is then transferred from the Sales Day Book.
  • It is important to note that the decision as to when the total is transferred to the Sales Account is up to the business in question, it could be monthly, weekly, daily etc but it has to be consistently stuck to.

To access more topics go to the Principles of Accounts Notes.