Special Journals: Purchases and Cash Payments

Chapter 17

Using the Purchases Journal• Purchases journal is for recording purchases on

account. (Not just merchandise but anything on account)

• Enter date the invoice was received not the date it was prepared

Pg 482

Purchases ofMerchandiseOn account

Purchases of Non MerchandiseOn account

Pgs 483-484

Posting Merchandise

Posting Non-Merchandise

Pgs 485-486

Proving and RulingSpecial Amount Columns

Posting Column Totals

Pgs 486-487

Using the Cash Payments Journal

• The cash payments journal is used to record all transactions in which cash is paid out or decreased.

Pg 489

Cash Payment for Prepaid Insurance

Cash Payment for Purchases

Cash Payment on Account Payable

Pgs 490-491

Cash Payment for TransportationIn

Cash Paid for Salaries

Cash Payment ofMiscellaneous Expenses such as Bank service charges

Pgs 492-493

Cash Payment of Bank Card Fees

Pg 494

Posting Payment to an AccountsPayable

Posting Transactions From the General Column

Accounts payable payments and payments to accounts journalized in the general column are posted individually on a daily basis.

Pgs 495, 497

Proving and Ruling the Cash Payments Journal

Pg 498

Posting Column Totals of the Cash Payments Journal

Prove and rule the journal Once debits and credits equal

General Column TotalsDon’t get posted.

Totals are posted onceA month

Pg 499

Schedule of Accounts Payable• Used to make sure that the amount in the

controlling account, Accounts Payable, it the same as the account totals in the Subsidiary Ledger.

Pg 500

Proving Cash

• Proving Cash is the process of verifying that cash recorded in the accounting records (cash ledger) agrees with the amount in the checkbook (check stub).

Pg 501