A sales tax payable account would be opened in the general ledger and the total of sales taxes payable column of sales journal would.

Example of journal sales. An example of sales journal with a sales tax payable column is given below. After youre done with debits and credits add the date of the transaction reference number and a brief description. The sales journal given above shows that the seller is collecting a sales tax 2 on all goods sold to customers.

Assume that Big Guitars Inc. The journal entry for a cash sale actually involves two possibilities. We made out an invoice and sent the top copy of the invoice to W Co.

Assume the sale tax is 5. For example cash sales of 3000 to Mr. The posting of this sales journal will be similar to the posting explained in the above example.

Company A sold the goods to the final user for 10000 excluding tax. Let us take the example of SAF Ltd that purchased the equipment at the beginning of the financial year 2019 ie. This what makes sales journals a great example of simple accounting.

There are numerous advantages to keep a sales journal. Lets say that you make a sale to a customer on credit. Here is an example sales journal.

10 cartons of soap 300 per carton. Please calculate the sale tax for all companies. Sold a guitar to a Josh Roberts for 1500 on January 1st.