Chapter 2 Accounting for Business Transactions & Journalizing
CHAPTER THIRTEEN SPECIAL JOURNALS. 4Designed for recording only certain kinds of transactions 4Save...
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Transcript of CHAPTER THIRTEEN SPECIAL JOURNALS. 4Designed for recording only certain kinds of transactions 4Save...
SPECIAL JOURNALS
Designed for recording only certain kinds of transactions
Save time journalizing and posting transactions:Transactions entered on a single line.Column totals are posted periodically.
General Journal still needed for some transactions.
SPECIAL JOURNALS
SPECIAL JOURNAL TRANSACTIONS
Sales Journal Sales on account
Only sales “on account,” not cash sales.
SPECIAL JOURNALS
SPECIAL JOURNAL TRANSACTIONS
Sales Journal Sales on account
Any transaction in which cash is received.
Cash Sales are recorded in this journal.
Cash Receipts Journal Cash receipts
SPECIAL JOURNALS
SPECIAL JOURNAL TRANSACTIONS
Sales Journal Sales on account
“ON ACCOUNT” purchasesof MERCHANDISE only
Cash Receipts Journal Cash receipts
Purchases Journal Purchases on account
SPECIAL JOURNALS
SPECIAL JOURNAL TRANSACTIONS
Sales Journal Sales on account
Cash Receipts Journal Cash receipts
Purchases Journal Purchases on account
Cash Payments Journal Cash payments
Any transaction in which cash is paid.
SALES TRANSACTIONS
• April 4 Made sale no. 133C on account to Enrico Lorenzo, $1,520 plus $76 sales tax
• April 10 Made sale no. 134C on account to Brenda Myers, $40 plus $22 sales tax
• April 18 Made sale no. 105D on account to Edith Walton, $980 plus $49 sales tax
• April 21 Made sale no. 202B on account to Susan Chang, $620 plus $31 sales tax
• April 24 Made sale no. 162A on account to Heidi Schwitzer, $1,600 plus $80 sales tax
Let’s review the General Journalentries for these
transactions.
GENERAL JOURNAL
DATE DESCRIPTION PR DEBIT CREDIT
1
2
3
4
5
6
7
8
9
10
11
Apr. 4 Accts. Receivable/E. Lorenzo 1,596 00
Sales 1,520 00
Sales Tax Payable 76 00
sale no. 133C
4 lines are used to prepareone journal entry!!
GENERAL JOURNAL
DATE DESCRIPTION PR DEBIT CREDIT
1
2
3
4
5
6
7
8
9
10
11
Apr. 4 Accts. Receivable/E. Lorenzo 1,596 00
Sales 1,520 00
Sales Tax Payable 76 00
sale no. 133C
10 Accts. Receivable/B. Myers 462 00
440 00Sales
Sales Tax Payable
sale no. 134C
22 00
GENERAL JOURNAL continued
DATE DESCRIPTION PR DEBIT CREDIT
Accts. Receivable/E. Walton12
13
14
15
16
17
18
19
20
21
22
18
Sales
Sales Tax Payable
1,029 00
980 00
49 00
sale no. 105D
Accts. Receivable/S. Chang
Sales
Sales Tax Payable
sale no. 202B
651 00
620 00
31 00
21
GENERAL JOURNAL continued
DATE DESCRIPTION PR DEBIT CREDIT
Accts. Receivable/H. Schwitzer23
24
25
26
27
28
29
30
31
32
33
24
Sales
Sales Tax Payable
1,680 00
1,600 00
80 00
sale no. 162AAll the entries involved the same
accounts!!
SALES JOURNAL
A column for each account involved in “Sales on account” transactions:Accounts Receivable (Debit), Sales (Credit),
Sales Tax Payable (Credit)
Four steps for entering a transaction:Step #1 Enter Date.Step #2 Enter Sales number.Step #3 Enter Customer.Step #4 Enter Dollar amount.
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 4 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 76
The whole transaction isrecorded on ONE line.
Account names are not entered.
Page 6
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
Now let’s look at posting from the Sales Journal.
Page 6
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
Step #1a Total the amount columns.
5,418 5,160 258
Page 6
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
Step #1b Verify that the total of the debit column equals
the total of the credit columns.
5,418 5,160 258
Page 6
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
5,418 5,160 258
Debits$5,418
Credits $5,418
Page 6
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
Step #1c Rule the columns.
5,418 5,160 258
Page 6
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
Let’s post the Accounts Receivable total.
5,418 5,160 258
Page 6
FOUR-COLUMN ACCOUNT
Account: Account No.
DATE ITEM PR DR. CR.BALANCE
DR. CR.
ACCOUNTS RECEIVABLE 122
20--Apr. 1 12,000
30
Balance
Step #2 Enter the date.
FOUR-COLUMN ACCOUNT
Account: Account No.
DATE ITEM PR DR. CR.BALANCE
DR. CR.
ACCOUNTS RECEIVABLE 122
20--Apr. 1 12,000
30
Balance
Step #3 Enter the amount.
5,418
FOUR-COLUMN ACCOUNT
Account: Account No.
DATE ITEM PR DR. CR.BALANCE
DR. CR.
ACCOUNTS RECEIVABLE 122
20--Apr. 1 12,000
30
Balance
Step #4 Enter the new balance.
5,418 17,418
FOUR-COLUMN ACCOUNT
Account: Account No.
DATE ITEM PR DR. CR.BALANCE
DR. CR.
ACCOUNTS RECEIVABLE 122
20--Apr. 1 12,000
30
Balance
Step #5 Enter “S” for Sales Journal and the journal page number.
5,418 17,418S6
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
Step #6 Enter the accountnumber below the column total.
5,418 5,160 258
Page 6
(122)
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
Steps #2 - #6 will be repeated for theSales and Sales Tax Payable columns.
5,418 5,160 258
Page 6
(122) (401) (231)
SALES JOURNALDate To Whom Sold PR Accts. Receivable
Debit/Sales Credit1
2
3
4
5
6
7
8
9
10
11
Sale No.
A company that does not chargesales tax, such as a wholesaler,
will use a single column Sales Journal.
Page 1
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
Each transaction must also be postedto the Accounts Receivable ledger.
5,418 5,160 258
Page 6
(122) (401) (231)
ACCOUNTS RECEIVABLE LEDGER
Name:
DATE ITEM PR DEBIT CREDITBALANCE
Enrico Lorenzo
20--Apr. 1,5964
Address: 5240 Tousley Court, Indianapolis, IN 46224-5678
1,596S6
Step #1 Enter the date.Step #2 Enter the amount.Step #3 Update the balance.Step #4 Enter “S” (Sales Journal) and “6” (page number) in the PR column.
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
“” is entered to indicate thetransaction has been posted to
the Accounts Receivable ledger.
5,418 5,160 258
Page 6
(122) (401) (231)
SALES JOURNALDate To Whom Sold PR Accts. Rec.
DebitSales Tax
Pay. Credit
1
2
3
4
5
6
7
8
9
10
11
Sale No.
20--Apr 133C
Sales Credit
Enrico Lorenzo 1,596 1,520 764
10 134C Brenda Myers 462 440 22
18 105D Edith Walton 1,029 980 49
21 202B Susan Chang 651 620 31
24 162A Heidi Schwitzer 1,680 1,600 80
The other sales are posted to theAccounts Receivable ledger
in the same manner.
5,418 5,160 258
Page 6
(122) (401) (231)
CASH RECEIPTS JOURNAL
Used to record only cash receipt transactions
Includes separate columns for:Cash (Debit)Bank Credit Card Expense (Debit)Accounts Receivable (Credit)Sales (Credit)Sales Tax Payable (Credit)General (Credit)
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
EXAMPLE: April 14, received cash on account from Enrico Lorenzo
for sale no. 133C, $1,596.
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Step #1 Enter date.
Apr20--
14
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Step #2 Enter name of account credited.
Apr20--
14 Enrico Lorenzo
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo
This column is used for two purposes:
1. To identify the customer name for any collection on account. This column is used whenever the Accounts Receivable Credit column is used.
2. To enter the appropriate account name whenever the General Credit column is used.
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Step #3 Enter the dollar amounts.
Apr20--
14 Enrico Lorenzo 1,596
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 462
Cash was also received on account on April 20th and 28th.
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
Now let’s journalize cash sales for April 30th of $3,600 plus tax of $180.
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
This column is left blank for cash sales.
30
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
3,600 180 = 3,780
Total Credits = Total Debits
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
Bank credit card sales are similar to cash sales,no entry is made in the “Account Credited”
column.
30
30
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
Bank Credit Card Sales of $2,500were made this month.
2,500
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
Sales Tax on these sales was $125.
2,500 125
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
The service charge on these bank credit card sales was $100.
2,500 125 100
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
The cash received was $2,525 [($2,500sales + $125tax) - $100service chg].
2,500 125 100 2,500
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
Example: April 30, received cash for rent revenue $600.
30
30
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
We need to credit Rent Revenue and debit Cash.
30
30
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
Since there is no column for Rent Revenue,we must use the “General Credit” column.
30
30
30 600
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
When the “General Credit” column is used,the “Account Credited” column must identifythe specific General Ledger account affected.
30
30
30 600Rent Revenue
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
Borrowing money would berecorded in a similar manner.
30
30
30 600Rent Revenue
30 Notes Payable 3,000
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
3,000 3,000
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
On a daily basis, the amounts in the “General Credit” column are posted.
30
30
30 600Rent Revenue
30 Notes Payable 3,000
FOUR-COLUMN ACCOUNT
Account: Account No.
DATE ITEM PR DR. CR.BALANCE
DR. CR.
RENT REVENUE 412
20--Apr. 1 1,800
30
Balance
“CR” for Cash Receipts Journal.
600 2,400CR7
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
General Ledger account number
30
30
30 600Rent Revenue
30 Notes Payable 3,000
412
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
Notes Payable is posted in the same manner.
30
30
30 600Rent Revenue
30 Notes Payable 3,000
412
201
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
At the end of the month, the columns are totaled.
30
30
30 600Rent Revenue
30 Notes Payable 3,000
412
201
3,600 3,087
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
3,000 3,000
3,600 3,087 6,100 305 100 12,992
Next, we verify that the debit columns equal the total of the credit columns.
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
3,000 3,000
3,600 3,087 6,100 305 100 12,992
$3,600 + $3,087 + $6,100 + $305 = $13,092 Credits
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
3,000 3,000
3,600 3,087 6,100 305 100 12,992
$100 + $12,992 = $13,092 DebitsDEBITS = CREDITS!!!
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
3,000 3,000
3,600 3,087 6,100 305 100 12,992
Each column total (except General)is posted at the end of the month.
FOUR-COLUMN ACCOUNT
Account: Account No.
DATE ITEM PR DR. CR.BALANCE
DR. CR.
ACCOUNTS RECEIVABLE 122
20--Apr. 1 12,000
30
Balance
“CR” for Cash Receipts Journal
5,418 17,418S6
30 CR7 3,087 14,331
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
3,000 3,000
3,600 3,087 6,100 305 100 12,992
(122)Account Number indicates
total was posted.
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
3,000 3,000
3,600 3,087 6,100 305 100 12,992
(122) (401) (231) (513) (101)
Remaining columns are posted in the same manner.
CASH RECEIPTS JOURNALBank C C Exp. Debit
1
2
3
4
5
6
7
8
9
10
11
Page 7
Cash Debit
1,596
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
General Credit
1,596
462462
1,0291,029
3,600 180 3,780
2,500 125 100 2,500
600 600
3,000 3,000
3,600 3,087 6,100 305 100 12,992
(122) (401) (231) (513) (101)
“” indicates the column total is not posted.
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
Postings to the subsidiary Accounts Receivable ledger are made daily.
30
30
30 600Rent Revenue
30 Notes Payable 3,000
412
201
3,600 3,087
ACCOUNTS RECEIVABLE LEDGER
Name:
DATE ITEM PR DEBIT CREDITBALANCE
Enrico Lorenzo
20--Apr. 1,5964
Address: 5240 Tousley Court, Indianapolis, IN 46224-5678
1,596S6
14 1,596CR7
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
“” indicates transaction was posted tothe Accounts Receivable subsidiary ledger.
30
30
30 600Rent Revenue
30 Notes Payable 3,000
412
201
3,600 3,087
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
The payments by Brenda and Edith are posted in the same manner.
30
30
30 600Rent Revenue
30 Notes Payable 3,000
412
201
3,600 3,087
CASH RECEIPTS JOURNALDate Account Credited PR General
Credit1
2
3
4
5
6
7
8
9
10
11
Page 7
Accts. Rec. Credit
Apr20--
14 Enrico Lorenzo 1,596
20 Brenda Myers 46228 Edith Walton 1,029
“” is entered into the PR columnfor cash sales and bank credit card sales.
30
30
30 600Rent Revenue
30 Notes Payable 3,000
412
201
3,600 3,087
PURCHASES JOURNAL
Purchases of MERCHANDISE for resale Only ON ACCOUNT
Cash purchases would be recorded in the Cash Payments Journal.
Single column formatPurchases Debit/Accounts Payable Credit, OR
Three columnPurchases Debit, Freight-In Debit, Accounts
Payable Credit
PURCHASES JOURNALDate From Whom Purchased PR Purchases Debit/
Accounts Payable Credit1
2
3
4
5
6
7
8
9
10
11
Invoice No.
For our example, we will use a single column Purchases Journal.
Page 8
PURCHASES JOURNALDate From Whom Purchased PR Purchases Debit/
Accounts Payable Credit1
2
3
4
5
6
7
8
9
10
11
Invoice No.
Example: On April 4th, purchasedmerchandise from Compucraft, Inc. $3,300
Invoice no. 631, dated April 2, n/30.
Page 8
20--Apr 4 631 Compucraft, Inc. 3,300
PURCHASES JOURNALDate From Whom Purchased PR Purchases Debit/
Accounts Payable Credit1
2
3
4
5
6
7
8
9
10
11
Invoice No.
All purchases transactions are journalized inthe same manner.
Page 8
20--Apr 4 631 Compucraft, Inc. 3,300
8 927D Datasoft 2,500
11 804 EZX Corp. 8,700
17 611 Printpro Corp. 800
23 1465 Televax, Inc. 5,300
PURCHASES JOURNALDate From Whom Purchased PR Purchases Debit/
Accounts Payable Credit1
2
3
4
5
6
7
8
9
10
11
Invoice No.
At the end of the month,the column is totaled,
ruled, and posted to theGeneral Ledger accounts.
Page 8
20--Apr 4 631 Compucraft, Inc. 3,300
8 927D Datasoft 2,500
11 804 EZX Corp. 8,700
17 611 Printpro Corp. 800
23 1465 Televax, Inc. 5,300
20,600
FOUR-COLUMN ACCOUNT
Account: Account No.
DATE ITEM PR DR. CR.BALANCE
DR. CR.
PURCHASES 501
20--Apr. 1 17,400
30
Balance
“P” for Purchases Journal
20,600 38,000P8
PURCHASES JOURNALDate From Whom Purchased PR Purchases Debit/
Accounts Payable Credit1
2
3
4
5
6
7
8
9
10
11
Invoice No.
Page 8
20--Apr 4 631 Compucraft, Inc. 3,300
8 927D Datasoft 2,500
11 804 EZX Corp. 8,700
17 611 Printpro Corp. 800
23 1465 Televax, Inc. 5,300
20,600
(501)
Account Number indicatescolumn total has been posted.
FOUR-COLUMN ACCOUNT
Account: Account No.
DATE ITEM PR DR. CR.BALANCE
DR. CR.
ACCOUNTS PAYABLE 202
20--Apr. 1 4,800
30
Balance
20,600 25,400P8
PURCHASES JOURNALDate From Whom Purchased PR Purchases Debit/
Accounts Payable Credit1
2
3
4
5
6
7
8
9
10
11
Invoice No.
Page 8
20--Apr 4 631 Compucraft, Inc. 3,300
8 927D Datasoft 2,500
11 804 EZX Corp. 8,700
17 611 Printpro Corp. 800
23 1465 Televax, Inc. 5,300
20,600
(501) (202)Transactions are posted to
the Accounts Payable ledgeron a daily basis.
ACCOUNTS PAYABLE LEDGER
Name:
DATE ITEM PR DEBIT CREDITBALANCE
Compucraft, Inc.
20--Apr. 3,3004
Address: 5240 Tousley Court, Indianapolis, IN 46224-5678
3,300P8
PURCHASES JOURNALDate From Whom Purchased PR Purchases Debit/
Accounts Payable Credit1
2
3
4
5
6
7
8
9
10
11
Invoice No.
Page 8
20--Apr 4 631 Compucraft, Inc. 3,300
8 927D Datasoft 2,500
11 804 EZX Corp. 8,700
17 611 Printpro Corp. 800
23 1465 Televax, Inc. 5,300
20,600
(501) (202)
“” is placed in the PR columnwhen posting is completed.
PURCHASES JOURNALDate From Whom Purchased PR Purchases Debit/
Accounts Payable Credit1
2
3
4
5
6
7
8
9
10
11
Invoice No.
Page 8
20--Apr 4 631 Compucraft, Inc. 3,300
8 927D Datasoft 2,500
11 804 EZX Corp. 8,700
17 611 Printpro Corp. 800
23 1465 Televax, Inc. 5,300
20,600
(501) (202)
The remaining transactionsare posted in the same manner.
CASH PAYMENTS JOURNAL
Used to record only cash payments transactions
Every transaction in the journal will involve a credit to the Cash account.
Columns are set up in the journal for the most commonly affected accounts in cash payments transactions.
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
Example: Payment of rent, $2,400 on April 2
Check No.
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
All cash payments (except thosefrom Petty Cash) should be made
by check for good internal control.
20--Apr. 2
Check No.
307
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
This column is used for two purposes:1. To identify a supplier name for any payment on account2. To enter the appropriate account name whenever the “General Debit” column is used
20--Apr. 2
Check No.
307 2,400Rent Expense
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
Example: On April 4 $1,400 of merchandise was purchased for cash.
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
1,400 1,400
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
Example: On April 10 payment wasmade on account, $4,800.
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
1,400 1,400
4,800 4,800
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
Example: On April 14 payment wasmade on a note payable, $2,000.
2,000
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
1,400 1,400
4,800 4,800
2,0002,000
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
Example: On April 22 owner withdrewcash for personal use, $1,600.
2,000
22 311 Gary L. Fishel, Drawing 1,600
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
1,400 1,400
4,800 4,800
2,0002,000
1,6001,600
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
Example: On April 24 made paymenton account within the discount period.
2,000
22 311 Gary L. Fishel, Drawing 1,600
24 312 EZX Corp.
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
1,400 1,400
4,800 4,800
2,0002,000
1,6001,600
8,700 87 8,613
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
On a daily basis, the amounts in the “General Debit” column are posted.
2,000
22 311 Gary L. Fishel, Drawing 1,600
24 312 EZX Corp.
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
“CP” for Cash Payments journal is entered in the ledger account’s PR column,and the account number is entered
in the journal’s PR column.
2,000
22 311 Gary L. Fishel, Drawing 1,600
24 312 EZX Corp.
521
201
312
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
At the end of the month, the columns aretotaled, equality of debits and credits
is verified, and totals are postedto the General Ledger.
2,000
22 311 Gary L. Fishel, Drawing 1,600
24 312 EZX Corp.
521
201
312
6,000
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
1,400 1,400
4,800 4,800
2,0002,000
1,6001,600
8,700 87 8,613
6,000 13,500 1,400 87 20,813
6,000 13,500 1,400
= 20,900
87 20,813
= 20,900
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
1,400 1,400
4,800 4,800
2,0002,000
1,6001,600
8,700 87 8,613
6,000 13,500 1,400 87 20,813
“” indicates the column
should not be posted.
CASH PAYMENTS JOURNAL
1
2
3
4
5
6
7
8
9
10
11
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
2,4002,400
1,400 1,400
4,800 4,800
2,0002,000
1,6001,600
8,700 87 8,613
6,000 13,500 1,400 87 20,813
Account numbers indicatethe total were posted.
(202) (501) (501.2) (101)
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
Transactions affecting the Accounts Payable ledger are posted daily.
2,000
22 311 Gary L. Fishel, Drawing 1,600
24 312 EZX Corp.
521
201
312
6,000
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
“” is entered to indicate the transaction has been posted.
2,000
22 311 Gary L. Fishel, Drawing 1,600
24 312 EZX Corp.
521
201
312
6,000
CASH PAYMENTS JOURNALDate Account Debited PR General
Debit1
2
3
4
5
6
7
8
9
10
11
Page 12
20--Apr. 2
Check No.
307 2,400Rent Expense
4 308
10 309 B.B. Small
14 310 Notes Payable
“” is also entered for transactionsthat do not require individual postings.
2,000
22 311 Gary L. Fishel, Drawing 1,600
24 312 EZX Corp.
521
201
312
6,000