Accounting·Basic accounting systems · NSSCO 2.4
Invoices & the Debtors Journal
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When a business sells goods on credit, the customer takes the goods now and pays later. In this lesson we meet the invoice — the source document the seller issues — name every part of it, learn the terms trade discount, cash discount and E&OE, then list all our credit sales in the Debtors Journal and post them to the Debtors Ledger and the General Ledger.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 2.4):
- Explain the contents of and complete an invoice
- Explain the terms relating to sales on an invoice including trade discount, E&OE, cash discount
- Explain why the Debtors Journal is used
- Prepare the Debtors Journal from details extracted from invoices
- Post from the Debtors Journal to the Debtors Ledger and the General Ledger
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