Subsidiary Books: Sales Book MCQs Quiz | Class 9
This quiz is for Class 9 students studying Elements of Book-Keeping & Accountancy (Code 254), Unit 4: Journal. It covers the topic of the Sales Book, focusing on credit sales of goods, the format of the Sales Book, and the basics of recording entries. Attempt all questions, submit your answers to see your score, and download the PDF answer sheet for review.
Understanding the Sales Book
In accountancy, as a business grows, recording every transaction in a single Journal becomes cumbersome. To overcome this, the Journal is subdivided into special journals or ‘Subsidiary Books’. Each subsidiary book is used to record a specific type of transaction. The Sales Book (also known as the Sales Day Book) is one such important subsidiary book.
What is a Sales Book?
The Sales Book is a book of original entry used to record only the credit sales of goods. ‘Goods’ refer to the items that the business regularly buys and sells. It’s crucial to remember what is NOT recorded here:
- Cash sales of goods: These are recorded in the Cash Book.
- Credit sales of assets: For example, selling old furniture on credit. This is recorded in the Journal Proper.
- Cash sales of assets: This is also recorded in the Cash Book.
The entries in the Sales Book are made from the outgoing invoices sent to customers.
Format of a Sales Book
A standard Sales Book has the following columns:
| Date | Particulars (Customer’s Name) | Invoice No. | L.F. | Amount (Rs.) |
|---|---|---|---|---|
| (Date of sale) | (Name of the customer) | (Bill number) | (Ledger Folio) | (Net amount) |
- Date: The date of the credit sale transaction.
- Particulars: The name of the customer to whom goods are sold on credit. Details of goods sold can also be mentioned.
- Invoice No.: The serial number of the sales invoice.
- L.F. (Ledger Folio): The page number of the customer’s account in the Sales Ledger. This is filled in when posting.
- Amount: The net amount of the sale after deducting any trade discount.
Posting from the Sales Book to the Ledger
Posting from the Sales Book is done in two steps:
- Individual Entries: Each customer’s account in the Sales Ledger is debited individually with the amount of sale made to them. This is done periodically, often daily.
- Total Posting: At the end of a period (e.g., a month), the total of the ‘Amount’ column of the Sales Book is calculated. This total is then posted to the credit side of the Sales Account in the General Ledger.
Quick Revision Points
- The Sales Book is a subsidiary book and a book of original entry.
- It records ONLY credit sales of goods.
- The source document is the sales invoice.
- Trade discount is deducted from the list price before recording the entry; it is not shown separately.
- The total of the Sales Book shows the total credit sales for a period and is credited to the Sales Account.
Practice Questions
- What entry is passed in the Journal Proper for the sale of old machinery on credit?
- If goods worth Rs. 10,000 are sold to Rohan at a 10% trade discount, at what value will the transaction be recorded in the Sales Book?
- Where would you record the sale of goods for cash to Priya?
- Explain the meaning of ‘Ledger Folio’ (L.F.).
- Why is the total of the Sales Book credited to the Sales Account?
