Presentation is loading. Please wait.

Presentation is loading. Please wait.

C5 - 1 Learning Objectives Power Notes Accounting Systems and Internal Controls Accounting Systems and Internal Controls 1.Basic Accounting Systems 2.Internal.

Published byEleanore Stella Sutton Modified over 9 years ago

Similar presentations

Presentation on theme: "C5 - 1 Learning Objectives Power Notes Accounting Systems and Internal Controls Accounting Systems and Internal Controls 1.Basic Accounting Systems 2.Internal."— Presentation transcript:

1 C5 - 1 Learning Objectives Power Notes Accounting Systems and Internal Controls Accounting Systems and Internal Controls 1.Basic Accounting Systems 2.Internal Control 3.Manual Accounting Systems 4.Adapting Manual Accounting Systems 5.Computerized Accounting Systems Chapter 5 C5

2 C5 - 2 Internal Control Framework, Procedures Special Journals, Ledgers Revenue Journal and Ledgers Cash Receipts Journal and Ledgers Purchases Journal and Ledgers Cash Payments Journal and Ledgers Slide # Power Note Topics 3 9 17 23 31 37 Note: To select a topic type the slide # and press Enter. Power Notes Chapter 5 Accounting Systems and Internal Controls Accounting Systems and Internal Controls

3 C5 - 3 1.Control Environment Control Environment Internal Control Framework

4 C5 - 4 1.Control Environment 2.Risk Assessment Risk Assessment Control Environment Internal Control Framework

5 C5 - 5 1.Control Environment 2.Risk Assessment 3.Control Procedures Control Procedures Risk Assessment Control Environment Internal Control Framework

6 C5 - 6 1.Control Environment 2.Risk Assessment 3.Control Procedures 4.Monitoring Monitoring Control Procedures Risk Assessment Control Environment Internal Control Framework

7 C5 - 7 Internal Control Framework 1.Control Environment 2.Risk Assessment 3.Control Procedures 4.Monitoring 5.Information and Communication Communication Monitoring Control Procedures Risk Assessment Control Environment

8 C5 - 8 Internal Control Procedures Competent Personnel Rotating Duties Assigning Responsibility Separating Responsibilities for Related Operations Separating Accounting and Asset Custody Proofs and Security Measures

9 C5 - 9 Cash Accts. Payable General Ledger Accts. Receivable Supplies General Ledger and Subsidiary Ledgers

10 C5 - 10 Cash Accts. Payable General Ledger Accounts Receivable Subsidiary Ledger A BCD Customer Accounts Accts. Receivable Supplies General Ledger and Subsidiary Ledgers

11 C5 - 11 Cash General Ledger and Subsidiary Ledgers Supplies Accts. Payable General Ledger Accounts Receivable Subsidiary Ledger A BCD Customer Accounts Accts. Receivable Accounts Payable Subsidiary Ledger A BCD Creditor Accounts

12 C5 - 12 SELLING BUYING Special Journals

13 C5 - 13 Rendering of services on account SELLING Revenue Journal Revenue Journal recorded in BUYING Special Journals

14 C5 - 14 Rendering of services on account SELLING Revenue Journal Revenue Journal Cash Receipts Journal Receipt of cash from any source recorded in BUYING Special Journals

15 C5 - 15 Rendering of services on account SELLING Revenue Journal Revenue Journal Cash Receipts Journal Purchases Journal Receipt of cash from any source Purchase of items on account recorded in BUYING Special Journals

16 C5 - 16 Special Journals Rendering of services on account SELLING Revenue Journal Revenue Journal Cash Receipts Journal Cash Receipts Journal Purchases Journal Purchases Journal Cash Payments Journal Cash Payments Journal Receipt of cash from any source Purchase of items on account Payment of cash for any purpose recorded in BUYING

17 C5 - 17 3/2615MyMusicClub.com 2,200 3/6616RapZone.com 1,750 3/18617Web Cantina2,650 3/27618MyMusicClub.com 3,000 Totals9,600 Revenue Journal Invoice PostAccts. Rec. – Debit Date No.Account Debited Ref.Fees Earned – Credit Page 35 The Revenue Journal All sales on account are recorded in this journal. Each sales invoice is listed in numerical order. This journal is often referred to as an invoice register.

18 C5 - 18 Accounts Receivable Subsidiary Ledger DateItemP.R. DebitCreditBalance MyMusicClub.com Each debit is posted to the accounts receivable subsidiary ledger. Posting to the Subsidiary Ledger Revenue Journal Invoice PostAccts. Rec. – Debit Date No.Account Debited Ref.Fees Earned – Credit Page 35 2,200 3/2615 MyMusicClub.com 2,200 1,750 3/6616 RapZone.com 1,750 2,650 3/18617 Web Cantina2,650 3,000 3/27618 MyMusicClub.com 3,000 Totals9,600

19 C5 - 19 Accounts Receivable Subsidiary Ledger DateItemP.R. DebitCreditBalance MyMusicClub.com 3/2R35 2,2002,200 Each debit is posted to the accounts receivable subsidiary ledger. Posting to the Subsidiary Ledger Revenue Journal Invoice PostAccts. Rec. – Debit Date No.Account Debited Ref.Fees Earned – Credit Page 35 2,200 3/2615 MyMusicClub.com  2,200 1,750 3/6616 RapZone.com 1,750 2,650 3/18617 Web Cantina2,650 3,000 3/27618 MyMusicClub.com 3,000 Totals9,600

20 C5 - 20 Accounts Receivable Subsidiary Ledger DateItemP.R. DebitCreditBalance MyMusicClub.com 3/1R352,2002,200 3/27R353,0005,200 Each debit is posted to the accounts receivable subsidiary ledger. Posting to the Subsidiary Ledger Revenue Journal Invoice PostAccts. Rec. – Debit Date No.Account Debited Ref.Fees Earned – Credit Page 35     2,200 3/2615 MyMusicClub.com 2,200 1,750 3/6616 RapZone.com 1,750 2,650 3/18617 Web Cantina2,650 3,000 3/27618 MyMusicClub.com 3,000 Totals9,600

21 C5 - 21 General Ledger DateItemP.R. DebitCreditBalance  Account: Accounts Receivable No. 12 3/1Bal 3,400 The total is posted to Accounts Receivable AND to Fees Earned. Posting to the General Ledger Revenue Journal Invoice PostAccts. Rec. – Debit Date No.Account Debited Ref.Fees Earned – Credit Page 35     3/2615 MyMusicClub.com 2,200 3/6616 RapZone.com 1,750 3/18617 Web Cantina2,650 3/27618 MyMusicClub.com 3,000 9,600 Totals9,600

22 C5 - 22 General Ledger DateItemP.R. DebitCreditBalance  Account: Accounts Receivable No. 12 The total is posted to Accounts Receivable AND to Fees Earned. Posting to the General Ledger Revenue Journal Invoice PostAccts. Rec. – Debit Date No.Account Debited Ref.Fees Earned – Credit Page 35     3/1Bal 3,400 9,600 3/31R359,60013,000 3/2615 MyMusicClub.com 2,200 3/6616 RapZone.com 1,750 3/18617 Web Cantina2,650 3/27618 MyMusicClub.com 3,000 9,600 Totals9,600 (12) (41)

23 C5 - 23 3/1 Rent Revenue400 400 3/19 Web Cantina3,4003,400 3/28 MyMusicClub.com2,2002,200 3/30 RapZone.com 1,7501,750 Totals4007,3507,750 Cash Receipts Journal OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.CreditCreditDebit Page 14 The Cash Receipts Journal All cash received from any source is recorded in this journal. The total Cash Debit column equals the total of the two credit columns.

24 C5 - 24 3/1 Rent Revenue400 400 3,400 3/19 Web Cantina3,4003,400 2,200 3/28 MyMusicClub.com2,2002,200 1,750 3/30 RapZone.com 1,7501,750 Totals4007,3507,750 Accounts Receivable Subsidiary Ledger DateItemP.R. DebitCreditBalance Web Cantina Each Accounts Receivable credit is posted to the accounts receivable subsidiary ledger. Cash Receipts Journal OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.CreditCreditDebit Page 14 Posting to the Subsidiary Ledger 3/1Bal 3,400 3/27R352,6506,050 

25 C5 - 25 Accounts Receivable Subsidiary Ledger DateItemP.R. DebitCreditBalance Web Cantina Each Accounts Receivable credit is posted to the accounts receivable subsidiary ledger. Cash Receipts Journal OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.CreditCreditDebit Page 14  Posting to the Subsidiary Ledger 3/1Bal 3,400 3/18R352,6506,050 3,400 3/19CR143,4002,650  3/1 Rent Revenue400 400 3,400 3/19 Web Cantina3,4003,400 2,200 3/28 MyMusicClub.com2,2002,200 1,750 3/30 RapZone.com 1,7501,750 Totals4007,3507,750

26 C5 - 26 The three highlighted items are posted to the general ledger. Cash Receipts Journal OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.CreditCreditDebit Page 14     Posting to the General Ledger 400 3/1 Rent Revenue400 400 3/19 Web Cantina3,4003,400 3/28 MyMusicClub.com2,2002,200 3/30 RapZone.com 1,7501,750 7,3507,750 Totals4007,3507,750 ( ) General Ledger DateItemP.R. DebitCreditBalance  Account: Accounts Receivable No. 12 3/1Bal 3,400 3/31R359,60013,000

27 C5 - 27 The three highlighted items are posted to the general ledger. Cash Receipts Journal OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.CreditCreditDebit Page 14     Posting to the General Ledger 400 3/1 Rent Revenue42400 400 3/19 Web Cantina3,4003,400 3/28 MyMusicClub.com2,2002,200 3/30 RapZone.com 1,7501,750 7,3507,750 Totals4007,3507,750 ( )(12)(11) General Ledger DateItemP.R. DebitCreditBalance  Account: Accounts Receivable No. 12 3/1Bal 3,400 3/31R359,60013,000 7,350 3/31CR147,3505,650

28 C5 - 28 General Ledger Accounts Receivable Control Account DateItemP.R. DebitCreditBalance Account: Accounts ReceivableNo. 12 3/1Bal. 3,400 3/31R359,60013,000 5,650 3/31CR147,3505,650  If the accounts receivable account in the general ledger only shows summary totals, where are the individual customer balances?

29 C5 - 29 MyMusicClub.com DateItemP.R. DebitCreditBalance RapZone.com 3/6 R35 1,7501,750 0 3/30CR141,7500 DateItemP.R. DebitCreditBalance Web Cantina DateItemP.R. DebitCreditBalance 3/2R352,200 2,200 3/27R353,000 5,200 3,000 3/28CR142,2003,000 3/1Bal. 3,400 3/18R352,6506,050 2,650 3/19CR143,4002,650  General Ledger Accounts Receivable Control Account DateItemP.R. DebitCreditBalance Account: Accounts ReceivableNo. 12 3/1Bal. 3,400 3/31R359,60013,000 5,650 3/31CR147,3505,650  Accounts Receivable Subsidiary Ledger

30 C5 - 30 MyMusicClub.com DateItemP.R. DebitCreditBalance RapZone.com 3/6 R35 1,7501,750 0 3/30CR141,7500 DateItemP.R. DebitCreditBalance Web Cantina DateItemP.R. DebitCreditBalance 3/2R352,200 2,200 3/27R353,000 5,200 3,000 3/28CR142,2003,000 3/1Bal. 3,400 3/18R352,6506,050 2,650 3/19CR143,4002,650  General Ledger Accounts Receivable Control Account DateItemP.R. DebitCreditBalance Account: Accounts ReceivableNo. 12 3/1Bal. 3,400 3/31R359,60013,000 5,650 3/31CR147,3505,650  Accounts Receivable Subsidiary Ledger

31 C5 - 31 3/3Howard Supplies600600 3/7Donnelly Supplies420420 3/12Jewett Bus. Syst.2,800Office Equip. 2,800 3/19Donnelly Supplies1,4501,450 3/27Howard Supplies 960960 Totals6,2303,4302,800 Purchases Journal Accts.Other PostPayableSuppliesAccountsPost DateAccount CreditedRef.CreditDebitDebitRef.Amount Page 11 The Purchases Journal All purchases on account are recorded in this journal. The total credits to Accounts Payable equals the total of the two debit columns.

32 C5 - 32 Purchases Journal Accts.Other PostPayableSuppliesAccountsPost DateAccount CreditedRef.CreditDebitDebitRef.Amount Page 11 Accounts Payable Subsidiary Ledger DateItemP.R. DebitCreditBalance Howard Supplies Each credit is posted to the accounts payable subsidiary ledger. Posting to the Subsidiary Ledger 600 3/3Howard Supplies600600 420 3/7Donnelly Supplies420420 2,800 3/12Jewett Bus. Syst.2,800Office Equip. 2,800 1,450 3/19Donnelly Supplies1,4501,450 960 3/27Howard Supplies 960960 Totals6,2303,4302,800

33 C5 - 33 Purchases Journal Accts.Other PostPayableSuppliesAccountsPost DateAccount CreditedRef.CreditDebitDebitRef.Amount Page 11 Accounts Payable Subsidiary Ledger DateItemP.R. DebitCreditBalance Howard Supplies Each credit is posted to the accounts payable subsidiary ledger. Posting to the Subsidiary Ledger 600 3/3P11600600 600 3/3Howard Supplies  600600 420 3/7Donnelly Supplies420420 2,800 3/12Jewett Bus. Syst.2,800Office Equip. 2,800 1,450 3/19Donnelly Supplies1,4501,450 960 3/27Howard Supplies 960960 Totals6,2303,4302,800

34 C5 - 34 Purchases Journal Accts.Other PostPayableSuppliesAccountsPost DateAccount CreditedRef.CreditDebitDebitRef.Amount Page 11      Accounts Payable Subsidiary Ledger DateItemP.R. DebitCreditBalance Howard Supplies Each credit is posted to the accounts payable subsidiary ledger. Posting to the Subsidiary Ledger 3/3P11600600 960 3/27P119601,560 600 3/3Howard Supplies600600 420 3/7Donnelly Supplies420420 2,800 3/12Jewett Bus. Syst.2,800Office Equip. 2,800 1,450 3/19Donnelly Supp.1,4501,450 960 3/27Howard Supplies 960960 Totals6,2303,4302,800

35 C5 - 35 DateItemP.R. DebitCreditBalance Account: Accounts PayableNo. 21 General Ledger 3/1Bal. 1,230  The highlighted items are posted to the general ledger. Posting to the General Ledger Purchases Journal Accts.Other PostPayableSuppliesAccountsPost DateAccount CreditedRef.CreditDebitDebitRef.Amount Page 11      3/3Howard Supplies600600 3/7Donnelly Supplies420420 2,800 3/12Jewett Bus. Syst.2,800Office Equip. 2,800 3/19Donnelly Supp.1,4501,450 3/27Howard Supplies 960960 6,2303,430 Totals6,2303,4302,800 DateItemP.R. DebitCreditBalance 

36 C5 - 36 DateItemP.R. DebitCreditBalance Account: Accounts PayableNo. 21 General Ledger 3/1Bal. 1,230 6,230 3/31P116,2307,460  The highlighted items are posted to the general ledger. Posting to the General Ledger Purchases Journal Accts.Other PostPayableSuppliesAccountsPost DateAccount CreditedRef.CreditDebitDebitRef.Amount Page 11      3/3Howard Supplies600600 3/7Donnelly Supplies420420 2,800 3/12Jewett Bus. Syst.2,800Office Equip. 182,800 3/19Donnelly Supp.1,4501,450 3/27Howard Supplies 960960 6,2303,430 Totals6,2303,4302,800 ( 21)(14)( ) DateItemP.R. DebitCreditBalance 

37 C5 - 37 3/2150Rent Expense1,600 1,600 3/15151Grayco Supplies1,2301,230 3/21152Jewett Bus. Syst.2,8002,800 3/22153Donnelly Supp.420420 3/30154Utilities Expense1,0501,050 3/31155Howard Supplies600600 Totals2,6505,0507,700 Cash Payments Journal OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.DebitDebitCredit Page 7 The Cash Payments Journal All cash payments are recorded in this journal. Every check is listed in numerical order. This journal is often referred to as a check register.

38 C5 - 38 3/2150Rent Expense1,600 1,600 1,230 3/15151Grayco Supplies1,2301,230 2,800 3/21152Jewett Bus. Syst.2,8002,800 420 3/22153Donnelly Supp.420420 3/30154Utilities Expense1,0501,050 600 3/31155Howard Supplies600600 Totals2,6505,0507,700 Cash Payments Journal OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.DebitDebitCredit Page 7 Accounts Payable Subsidiary Ledger DateItemP.R. DebitCreditBalance  Grayco Supplies 3/1Bal. 1,230 Each Accounts Payable debit is posted to the accounts payable subsidiary ledger. Posting to the Subsidiary Ledger

39 C5 - 39 3/2150Rent Expense1,600 1,600 1,230 3/15151Grayco Supplies1,2301,230 2,800 3/21152Jewett Bus. Syst.2,8002,800 420 3/22153Donnelly Supp.420420 3/30154Utilities Expense1,0501,050 600 3/31155Howard Supplies600600 Totals2,6505,0507,700 Cash Payments Journal OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.DebitDebitCredit Page 7  Accounts Payable Subsidiary Ledger DateItemP.R. DebitCreditBalance  Grayco Supplies 3/1Bal. 1,230 1,230 3/15CP71,2300 Each Accounts Payable debit is posted to the accounts payable subsidiary ledger. Posting to the Subsidiary Ledger

40 C5 - 40 Cash Payments Journal OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.DebitDebitCredit Page 7      1,600 3/2150Rent Expense1,600 1,600 3/15151Grayco Supplies1,2301,230 3/21152Jewett Bus. Syst.2,8002,800 3/22153Donnelly Supp.420420 1,050 3/30154Utilities Expense1,0501,050 3/31155Howard Supplies600600 5,0507,700 Totals2,6505,0507,700 ( ) DateItemP.R. DebitCreditBalance Account: Accounts PayableNo. 21 General Ledger 3/1Bal. 1,230 3/31P116,2307,460  Posting to the General Ledger The highlighted items are posted to the general ledger.

41 C5 - 41 Cash Payments Journal OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.DebitDebitCredit Page 7      1,600 3/2150Rent Expense521,600 1,600 3/15151Grayco Supplies1,2301,230 3/21152Jewett Bus. Syst.2,8002,800 3/22153Donnelly Supp.420420 1,050 3/30154Utilities Expense541,0501,050 3/31155Howard Supplies600600 5,0507,700 Totals2,6505,0507,700 ( )(21)(11) DateItemP.R. DebitCreditBalance Account: Accounts PayableNo. 21 General Ledger 3/1Bal. 1,230 3/31P116,2307,460 5,050 3/31CP75,0502,410  The highlighted items are posted to the general ledger. Posting to the General Ledger

42 C5 - 42 Note: To see the topic slide, type 2 and press Enter. This is the last slide in Chapter 5. Power Notes Chapter 5 Accounting Systems and Internal Controls Accounting Systems and Internal Controls

Download ppt "C5 - 1 Learning Objectives Power Notes Accounting Systems and Internal Controls Accounting Systems and Internal Controls 1.Basic Accounting Systems 2.Internal."

Similar presentations

CACIK RUT DAMAYANTI, S.Sos, M.ProfAcc Contact number: 0341-473929 Blog:

CACIK RUT DAMAYANTI, S.Sos, M.ProfAcc Contact number: Blog:
C6 - 1 Learning Objectives Power Notes 1.Basic Accounting Systems 2.Internal Control 3.Controls Over Cash 4.Internal Control of Cash Receipts 5.Internal.

C6 - 1 Learning Objectives Power Notes 1.Basic Accounting Systems 2.Internal Control 3.Controls Over Cash 4.Internal Control of Cash Receipts 5.Internal.
Chapter 12 – Posting to General & Subsidiary Ledgers

Chapter 12 – Posting to General & Subsidiary Ledgers
Chapter 11 Posting to General and Subsidiary Ledgers

Chapter 11 Posting to General and Subsidiary Ledgers
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 11-4 Posting Special Journal Totals to a General Ledger.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 11-4 Posting Special Journal Totals to a General Ledger.
C5 - 1 Learning Objectives 1.Basic Accounting Systems 2.Internal Control 3.Manual Accounting Systems –The revenue and collection cycle –The purchase and.

C5 - 1 Learning Objectives 1.Basic Accounting Systems 2.Internal Control 3.Manual Accounting Systems –The revenue and collection cycle –The purchase and.
Accounting Words from Chapter 12. Subsidiary ledger.

Accounting Words from Chapter 12. Subsidiary ledger.
Posting to General and Subsidiary Ledgers

Posting to General and Subsidiary Ledgers
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Accounting Bell Ringer Tuesday, April 17 “TAX DAY” BELL RINGER Crossword Puzzle Choose the.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Accounting Bell Ringer Tuesday, April 17 “TAX DAY” BELL RINGER Crossword Puzzle Choose the.
5-1 1 Accounting Systems 5. 5-2 2 Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level.

5-1 1 Accounting Systems Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level.
5 Accounting Systems.

5 Accounting Systems.
1 5 Accounting Systems. 2 1. Define an accounting system and describe its implementation. 2. Journalize and post transactions in a manual accounting system.

1 5 Accounting Systems Define an accounting system and describe its implementation. 2. Journalize and post transactions in a manual accounting system.
Appendix C Special Journals and Subsidiary Ledgers.

Appendix C Special Journals and Subsidiary Ledgers.
Chapter 17 Special Journals: Purchases and Cash Payments

Chapter 17 Special Journals: Purchases and Cash Payments
Lecture 19 Chapter 5 Accounting Systems. Review of Lecture Format of Ledger with running balance Format of Ledger with running balance Special Journal.

Lecture 19 Chapter 5 Accounting Systems. Review of Lecture Format of Ledger with running balance Format of Ledger with running balance Special Journal.
Needles Powers Crosson Principles of Accounting 12e Supplement: Special-Purpose Journals 6 C H A P T E R © human/iStockphoto.

Needles Powers Crosson Principles of Accounting 12e Supplement: Special-Purpose Journals 6 C H A P T E R © human/iStockphoto.
5-1 1 Accounting Using Excel for Success PowerPoint Presentation by: Douglas Cloud, Professor Emeritus Accounting, Pepperdine University © 2011 Cengage.

5-1 1 Accounting Using Excel for Success PowerPoint Presentation by: Douglas Cloud, Professor Emeritus Accounting, Pepperdine University © 2011 Cengage.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 11-3 & 11-4 Posting from Journals to a General Ledger.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 11-3 & 11-4 Posting from Journals to a General Ledger.
Jobs 56-60 Chapter 12. Jobs 56-60 Chapter 12 How to keep a record of amounts owed to creditors How to prepare a schedule of Accounts Payable How to use.

Jobs Chapter 12. Jobs Chapter 12 How to keep a record of amounts owed to creditors How to prepare a schedule of Accounts Payable How to use.
 A businesses size, number of transactions, and types of transactions determine the number of ledgers used in an accounting system.

 A businesses size, number of transactions, and types of transactions determine the number of ledgers used in an accounting system.

Similar presentations

Ads by Google