The Difference Between Sales Book and Sales Account is that these terms are different from each other on the basis of the nature of business transactions i.e. Sales book includes only Credit Business Transactions but the Sales Account includes both types of Business Transactions. So, to know more about the Difference Between Sales Book and Sales Account, First of all, we have to clear the actual meaning or uses of both terms. These are explained below:
What is Sales Book: –
The Sales Book means that book in which we have the record of all credit transactions which are related to the sale of goods. It is the primary book-like journal daybook. The main purpose to prepare the Sales book is to maintain the record of credit business transactions which are related to the sale of goods and sundry Debtors with the details of the material sold to them and for recovering the outstanding amount in the future. The Format of the Sales book is shown as below: –
In the books of _________
Sales Books
|
Date |
Particulars |
Invoice No. |
L. F. |
Details |
Amount |
To know the details about the Sales Book, Please check out the following link:
Sales Book – Subsidiary Books – Examples
What is Sales Account: –
The Sales Account means that ledger account in which we have the record of all the business transactions which are related to the Sale of goods eighter cash or credit. The main purpose to prepare the Sales Account is to main the record of the total Sale of goods (stock) in the financial year. The Format of the Sales Account is shown as below: –
In the books of _________
Sales A/c
|
Date |
Particulars |
J.F. |
Amount |
Date |
Particulars |
J.F. |
Amount |
The Sale account is similar to any type of ledger account and treated as the same. So, to know the details about the Sales Book, Please check out the following link:
What is Ledger in accounting – explain its Types
Chart of Difference Between Sales Book and Sales Account: –
Basis of Difference |
Sales Book |
Sales Account |
|
Meaning |
The Sales Book means that book in which we have the record of all credit transactions which are related to the sale of goods. | The Sales Account means that ledger account in which we have the record of all the business transactions which are related to the Sale of goods eighter cash or credit. |
|
Types |
It is the Primary type of Book of accounts. | It is a Secondary type of Book of accounts Because it is based on a journal daybook. |
|
Main Purposes |
It is maintained to record all credit business transactions which are related to the Sales of goods. | It is maintained to the record of the total Sale of goods(stock) in the financial year |
|
Business Transaction |
In it, only credit business transactions are recorded. | In it, both credit and cash business transactions are recorded. |
|
Treatment in the Financial Statements |
The balance of it is not transferred in the Financial Statement of business. | The balance of it is transferred in the Financial Statement of business. It is transferred to Trading Account. |
|
Debit Column |
It does not have a Debit Column because it is a special-purpose book. | It does have both columns i.e Debit and Credit. |
|
Dependency on other books |
It is not dependent on any other primary book because the transaction is directly recorded in it from the Sale invoice. | It is dependent on the journal daybook. All the transaction which are related to the sale of goods is posted in this ledger from the journal. |
Download the chart:
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The conclusion of Difference: –
The conclusion of the Difference Between the Sales Book and Sales Account is that both terms are related to the separate book Because the Sales book is the primary book and the Sales account is the part of ledger accounts.
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