F8

Invoices are listed in the day books: SDB for sales invoices, PDB for purchase invoices.
The entries for each ‘day’ are totalled. This gives the total sales or purchases for the day.

The general ledger:

For the SDB total: Cr Sales (Cr VAT split out as required); Dr Receivables control account
For the PDB total: Dr Various expenses and VAT; Cr Payables control account

In the receivables ledger, Dr each individual invoice to the appropriate customer’s account.

In the payables ledger, Cr each individual invoice to the appropriate supplier’s account.

Journals are used as needed eg to put through depreciation, write off bad debts.

Trial balances can be taken at any time, but usually at least once a month.