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0 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using Special Journals Each transaction in a.

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Presentation on theme: "0 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using Special Journals Each transaction in a."— Presentation transcript:

1 0 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using Special Journals Each transaction in a general journal requires at least three journal lines. To improve efficiency merchandising businesses can use special journals. Special journals have amount columns used to record debits and credits to general ledger accounts. The four most commonly used special journals are:  sales journal,  cash receipts journal,  purchases journal, and  cash payments journal. The Sales Journal SECTION 16.1

2 1 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Journalizing and Posting to the Sales Journal The sales journal is used to record sales of merchandise on account. The Sales Journal SECTION 16.1

3 2 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Sales of Merchandise on Account To record transactions in the sales journal, move from left to right following these steps:  Enter the sales slip date in the Date column.  Enter the sales slip number is the Sales Slip No. column.  Enter the customer’s name in the Customers Account Debited column.  Enter the merchandise sold total in the Sales Credit column.  Enter the sales tax in the Sales Tax Payable Credit column.  Enter the total amount to be received in the Accounts Receivable Debit column. The Sales Journal SECTION 16.1

4 3 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting a Sale Journal Entry to the Accounts Receivable Subsidiary Ledger To post transactions to the accounts receivable subsidiary ledger, follow these steps: 1.Enter the transaction date in the Date column. 2.Enter the journal letter and page number in the Posting Reference column. 3.Enter the total amount to be received in the Debit column. 4.Compute the new balance and enter it in the Balance column. 5.Place a check mark in the Posting Reference column in the sales journal. The Sales Journal SECTION 16.1

5 4 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting a Sale Journal Entry to the Accounts Receivable Subsidiary Ledger The Sales Journal SECTION 16.1

6 5 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Completing the Sales Journal Only the amount column totals from the special journals are posted to the general ledger accounts. For the sales journal, the column totals posted are  the Sales Credit,  the Sales Tax Payable Credit, and  the Accounts Receivable Debit. The Sales Journal SECTION 16.1

7 6 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Footing, Proving, Totaling, and Ruling the Sales Journal Verify the column totals before posting them to the general ledger by following these steps: 1.Draw a single rule across the three amount columns, below the last transaction. 2.Foot the amount columns. Footing is a column total written in small penciled figures. 3.On separate paper, verify the debit column total equals the total of the two credit columns. 4.Enter the date in the Date column below the single rule. The Sales Journal SECTION 16.1

8 7 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Footing, Proving, Totaling, and Ruling the Sales Journal 5.Enter the word Totals on the same line in the Customer’s Account Debited Column. 6.Enter the column totals below the footings. 7.Double-rule the three amount columns. The Sales Journal SECTION 16.1

9 8 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Footing, Proving, Totaling, and Ruling the Sales Journal The Sales Journal SECTION 16.1

10 9 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Sales Credit Column Follow this procedure for posting the Sales Credit column to the general ledger Sales account: 1. In the Date column, enter the date from the Totals line of the sales journal. 2. Enter the sales journal letter and page number in the Posting Reference column. 3. Enter the total from the Sales Credit column of the sales journal in the Credit column. 4. Compute the new balance and enter it in the Credit Balance column. The Sales Journal SECTION 16.1

11 10 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Sales Credit Column 5. In the sales journal, enter the Sales account number, in parentheses, below the double rule in the Sales Credit column. The Sales Journal SECTION 16.1

12 11 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Sales Tax Payable Credit Column Follow this procedure for posting the total of the Sales Tax Payable Credit column: 1. In the Date column of the Sales Tax Payable account, enter the date from the Totals line of the sales journal. 2. Enter the sales journal letter and page number in the Posting Reference column. 3. Enter the total from the Sales Tax Payable Credit column of the sales journal in the Credit column. 4. Compute the new balance and enter it in the Credit Balance column. The Sales Journal SECTION 16.1

13 12 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Sales Tax Payable Credit Column 5. In the sales journal, enter the Sales Tax Payable account number, in parentheses, below the double rule in the Sales Tax Payable Credit column. The Sales Journal SECTION 16.1

14 13 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Accounts Receivable Debit Column Follow this procedure for posting the total of the Accounts Receivable Debit column: 1.In the Date column of the Accounts Receivable account, enter the date from the Totals line of the sales journal. 2.Enter the sales journal letter and page number in the Posting Reference column. 3.Enter the total from the Accounts Receivable Debit column of the sales journal in the Debit column. 4.Compute the new balance and enter it in the Debit Balance column. The Sales Journal SECTION 16.1

15 14 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Accounts Receivable Debit Column 5.In the sales journal, enter the Accounts Receivable account number, in parentheses, below the double rule in the Accounts Receivable Debit column. The Sales Journal SECTION 16.1

16 15 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Proving the Sales Journal at the End of a Page Sometimes the transactions will not fit on a single page. When this occurs, the journal page must be totaled and ruled before a new page is started. The Sales Journal SECTION 16.1

17 16 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Journalizing and Posting to the Cash Receipts Journal The cash receipts journal is a special journal used to record all cash receipt transactions. Every entry debits the Cash in Bank account. The Cash Receipts Journal SECTION 16.2

18 17 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Cash from Charge Customers Follow these steps when journaling cash receipts from charge customers:  Enter the transaction date in the Date column.  Enter the receipt number in the Document Number column.  Enter the customer’s name in the Account Name column.  Enter the decrease in the amount owed in the Accounts Receivable Credit column.  Enter the amount of cash received in the Cash in Bank Debit column. The Cash Receipts Journal SECTION 16.2

19 18 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Cash Received on Account, Less a Cash Discount Follow these steps to record a cash receipt transaction with a cash discount:  Enter the receipt date in the Date column.  Enter the receipt number in the Document Number column.  Enter the customer’s name in the Account Name column.  Enter the original sales transaction amount in the Accounts Receivable Credit column. The Cash Receipts Journal SECTION 16.2

20 19 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Cash Received on Account, Less a Cash Discount  Enter the cash discount amount in the Sales Discounts Debit column.  Enter the amount of cash received in the Cash in Bank Debit column. The Cash Receipts Journal SECTION 16.2

21 20 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Cash Sales Follow these steps to enter cash sales in the cash receipts journal:  Enter the cash register tape date in the Date column.  Enter the tape number in the Document Number column.  Enter Cash Sales in the Account Name column.  Enter a dash in the Posting Reference column.  Enter the amount of merchandise sold in the Sales Credit column. The Cash Receipts Journal SECTION 16.2

22 21 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Cash Sales  Enter the sales taxes collected in the Sales Tax Payable Credit column.  Enter the total cash received in the Cash in Bank Debit column. The Cash Receipts Journal SECTION 16.2

23 22 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Bankcard Sales Follow these steps to enter bankcard sales in the cash receipts journal:  Enter the cash register tape date in the Date column.  Enter the tape number in the Document Number column.  Enter Bankcard Sales in the Account Name column.  Enter a dash in the Posting Reference column.  Enter the amount of merchandise sold in the Sales Credit column. The Cash Receipts Journal SECTION 16.2

24 23 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Bankcard Sales  Enter the sales taxes collected in the Sales Tax Payable Credit column.  Enter the total cash received in the Cash in Bank Debit column. The Cash Receipts Journal SECTION 16.2

25 24 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Other Cash Receipts Follow these steps to record in the cash receipts journal a transaction that does not involve the sale of merchandise:  Enter the receipt date in the Date column.  Enter an R and the receipt number in the Document Number column.  Enter the general ledger account name in the Account Name column.  Enter the credit amount in the General Credit column.  Enter the total cash received in the Cash in Bank Debit column. The Cash Receipts Journal SECTION 16.2

26 25 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting to the Accounts Receivable Subsidiary Ledger Follow these steps to post a cash receipt transaction to an account in the accounts receivable subsidiary ledger:  Enter the transaction date in the Date column of the subsidiary ledger account.  Enter the journal letters and page number in the Posting Reference column.  Enter the amount from the Accounts Receivable Credit column of the cash receipts journal in the subsidiary ledger Credit column. The Cash Receipts Journal SECTION 16.2

27 26 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting to the Accounts Receivable Subsidiary Ledger  Enter the new balance in the Balance column. If it is zero, draw a line through it.  Enter a check mark in the Posting Reference column of the cash receipts journal. The Cash Receipts Journal SECTION 16.2

28 27 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the General Credit Column Follow these steps to post from the General Credit column of the cash receipts journal: 1.Enter the transaction date in the Date column of the general ledger. 2.Enter the journal letters and page number in the Posting Reference column. 3.Enter the amount from the General Credit column of the cash receipts journal. 4.Enter the new balance in the proper Balance column. If it is zero, draw a line through it. 5.Enter the general ledger account number in the Posting Reference column of the cash receipts journal. The Cash Receipts Journal SECTION 16.2

29 28 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the General Credit Column The Cash Receipts Journal SECTION 16.2

30 29 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Footing, Proving, Totaling, and Ruling the Cash Receipts Journal Follow these steps to complete the cash receipts journal: 1.Draw a single rule across the six amount columns below the last transaction. 2.Foot the columns. 3.Verify the debits and credits are equal. 4.Enter the date the journal is being totaled in the Date column. 5.Enter Totals in the Account Name column. 6.Enter the column totals, in ink, below the footings. 7.Double-rule the amount columns. The Cash Receipts Journal SECTION 16.2

31 30 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Footing, Proving, Totaling, and Ruling the Cash Receipts Journal The Cash Receipts Journal SECTION 16.2

32 31 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting Column Totals to the General Ledger Follow these steps to post totals to the general ledger:  Place a check mark in parentheses under the General Credit column total.  Post the Sales total to the Sales account Credit column.  Post the Sales Tax Payable total to the Sales Tax Payable account Credit column.  Post the Accounts Receivable total to the Accounts Receivable controlling account Credit column.  Post the Sales Discounts total to the Sales Discounts account Debit column. The Cash Receipts Journal SECTION 16.2

33 32 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting Column Totals to the General Ledger  Post the Cash in Bank total to the Cash in Bank account debit column.  Compute new balances for each general ledger account.  Write each account number in parentheses below the double rule in the cash receipts journal. The Cash Receipts Journal SECTION 16.2

34 33 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using the Schedule of Accounts Receivable A schedule is prepared for each subsidiary ledger to determine whether the subsidiary ledger’s sum equals the controlling account’s ending balance. The Cash Receipts Journal SECTION 16.2

35 34 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Proving the Accounts Receivable Subsidiary Ledger The schedule of accounts receivable is used to prove the receivable subsidiary ledger. The balance of Accounts Receivable in the general ledger should equal the individual accounts receivable subsidiary ledger totals. The Cash Receipts Journal SECTION 16.2

36 35 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Detecting Errors in the Subsidiary Ledger Some errors that could exist in the subsidiary ledger are  failing to post a transaction, or  miscalculating an account balance. Proving the accounts receivable subsidiary ledger does not ensure that transactions were posted to the correct customer account. The Cash Receipts Journal SECTION 16.2


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