Unit 10 - Sales Ledger

A sales ledger is an accounting tool that is employed in business to maintain record of total sales made, or invoices sent to the customers. It records and monitors all sales made, money received and money owed to the business.

Procedure for posting to the Sales Ledger when a credit sale is made

1. A customer buys goods from XYZ LTD on credit.

2. The bookkeeper issues a Sales Invoice and sends it to the customer.

3. The credit sale is recorded in the Sales Journal.

4. The details from the Sales Journal are posted in the Sales Ledger to the customer’s individual account.

5. Total Sales for the period is noted in the General Ledger.

6. The Accounts Receivable Clerk communicates with the customer to ensure that payment of the invoice is done on time (usually within 30 days).

7. When the customer finally pays, the transaction is recorded in the RECEIPTS side of the Cash Book.

8. A copy of the Sales Invoice is filed in XYZ records, along with any other documents received from the customer upon payment of the invoice.

Procedure for processing a refund to a customer

1. A customer returns some goods to XYZ Ltd OR XYZ Ltd discovers that a customer was overcharged.

2. A credit note is issued and sent to the customer.

3. The credit note is recorded in the Sales Return Journal.

4. Details of this transaction is posted to the Sales Ledger.

5. Total Sales Returns for the period is posted in the General Ledger.

6. A copy of the credit note is filed in XYZ Ltd’s records.


(1) GPR Ltd sells security products. On 21st September, 2014, Brown Enterprises Ltd purchased the following items on credit:

- 2 security cameras @ $500 each

- 5 ft cables @ $5.25 per foot

- 1 dvr with hard drive for $800

- 2 brackets @ $80 each

Payment is due in 30 days.

(2) On September 30th, Brown Enterprises Ltd paid off the bill using a cheque.

(3) On December 20th, the company returned 2 defective cables.

Assignment: Prepare the invoice, credit note and sales ledger entries.

SOME of the materials to complete the other assignments are available below. Students have the option of editing or printing the template.

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