2nd Edition by Edwin Olima FCCA
business will be selling goods
services and raising invoices
their customers for the goods and services sold
. In this chapter you will create
a summary of the sales invoices
your Work Pack as follows:
Arrange all your sales
date order (Work Pack, page 24
). This has been done for you in the work pack. When using
accounting software in practice this step would not be necessary as
the software can sort the invoices by date order.
List and analyze the
sales invoices as shown in the example below. Use the analysis paper
for sales (Work Pack, page 45
each invoice with an “E” after you have entered it on your
analysis paper. This avoids double counting
Invoice Analysis Example
For the credit note
, list it out as you would a sales
invoice but use a red pen to highlight the fact that it is to be
deducted. Put brackets round the amounts to indicate that it is a
Once you have listed
all your sales invoices
the credit note
, total up the Gross
, Net, Sales & other columns
at the bottom of the list.
have now created a list of sales for the period.
that net sales
the value of goods
services that flow out of
the business. The VAT
the tax on net sales
will flow out of the
business to the government (Chapter
summary also shows you who owes the business money and what they owe
the money for. Thus, it is also known as a debtors
that debtors represent cash that will flow
into the business.
your list to the one in the answer section at the back of the book.