Sales Day Book & Cash Receipts Book

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi All

Can you someone please help - I just can't get my head round this bit:

Post SDB to main ledger:
Dr Total sales to SLCA
Cr Net sales to Sales
Cr VAT sales to VAT

Post CRB to main ledger:
Cr Debtors to SCLA
Cr Net cash sales to Sales
Cr Vat cash sales to VAT

I don't understand why you Cr the Sales and VAT twice - with both the SDB and CRB?? :oops: Can someone please shed some light? Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Day Book & Cash Receipts Book

    When you post the SDB you are only posting the credit sales. When you post the cash book you are posing the cash sales, so when you post the sales youre not posting the same ones twice, they're the cash sales rather than the credit sales. Same as VAT, youre posting the VAT of the cash sales rather than the credit sales, so you're not posting them twice, they are different sales.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Day Book & Cash Receipts Book

    OK, I think I get it - thanks!! :?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Day Book & Cash Receipts Book

    Lol when you first listen to it like that it sounds like greek! But once youve got your head around it and it makes sense you wont forget it, it will stick with you.

    Good luck

    Gem
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Day Book & Cash Receipts Book

    Hello Rous,

    As Gem said, you have to remember that credit and cash sales are two entirely different things. As you know, the debit entry is the full sales amount including VAT, it's the accounts they ago to that may be confusing you.

    You are almost right with your postings;

    SDB - Credit sales;
    Debit the full amount to the sales ledger control account
    Credit the figure - less VAT - to the sales account
    Credit the VAT element to the VAT account

    CRB - Cash sales;
    Debit the full amount to the CRB or bank account*
    Credit the figure - less VAT - to the sales account
    Credit the VAT element to the VAT account

    *Credit sales are debited to the Sales ledger control account as the money will be collected later.
    However, as it's "real money", cash sales are usually debited to the bank account.

    Generally, debtors are people who will owe you money for a period of time i.e. buying on credit, as opposed to cash customers who pay up front or at the time of taking the goods.

    It's just the payment method, cash or credit - the debit entry - that's different between the two types of sale.

    The only gripe I had with foundation was the CRB, as I believe they should have properly referred to this as the bank account, which is really what it is. If they'd tought us this in a standard T account format, it would have made things so much easier! Very simply put, debit payments in, credit payments out!

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