What are the various kinds of forms and documents used in sales accounting?


The coverage of sales accounting includes charging and collecting payments, sales statistics and information for reference at a future date. The following kinds of forms and documents are used in sales accounting.

(a) Challan: Challan is termed as a despatch advice of goods to the customers.

(b) Orders: An order is an agreement to buy by a prospective buyer. It acts as a directive to despatch the goods.


(c) Invoice: The invoice shows in detail the quantity, description and specification of the goods which are sold.

(d) Credit Note: when the buyer due to wrong delivery or defect in goods returns goods, a credit note is prepared to reduce the buyer’s responsibility.

(e) Sales journal: This is the principal book, which serves as a diary of the sales transactions.

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