1. CHAPTER THIRTEEN
SPECIAL JOURNALS

2. 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

3. Only sales “on account,”
SPECIAL JOURNALS
SPECIAL JOURNAL
TRANSACTIONS
Sales Journal
Sales on account
Only sales “on account,”
not cash sales.

4. Any transaction in which Cash Sales are recorded in this journal.
SPECIAL JOURNALS
SPECIAL JOURNAL
TRANSACTIONS
Sales Journal
Sales on account
Cash Receipts Journal
Cash receipts
Any transaction in which
cash is received.
Cash Sales are recorded in this journal.

5. “ON ACCOUNT” purchases
SPECIAL JOURNALS
SPECIAL JOURNAL
TRANSACTIONS
Sales Journal
Sales on account
Cash Receipts Journal
Cash receipts
Purchases Journal
Purchases on account
“ON ACCOUNT” purchases
of MERCHANDISE only

6. Any transaction in which cash is paid.
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.

7. SALES TRANSACTIONS
Let’s review the
General Journal
entries for these
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

8. 4 lines are used to prepare
GENERAL JOURNAL
DATE
DESCRIPTION
DEBIT PR
CREDIT 1
Apr. 4
Accts. Receivable/E. Lorenzo 1, 2
Sales 1, 3
Sales Tax Payable
76 00 4
sale no. 133C 5
4 lines are used to prepare
one journal entry!! 6 7 8 9 10 11

9. GENERAL JOURNAL DATE DESCRIPTION DEBIT PR CREDIT 1 Apr. 4
Accts. Receivable/E. Lorenzo 1, 2
Sales 1, 3
Sales Tax Payable
76 00 4
sale no. 133C 5 6 10
Accts. Receivable/B. Myers 7
Sales 8
Sales Tax Payable
22 00 9
sale no. 134C 10 11

10. GENERAL JOURNAL continued
DATE
DESCRIPTION
DEBIT PR
CREDIT 12 18
Accts. Receivable/E. Walton
1,029 00 13
Sales 14
Sales Tax Payable
49 00 15
sale no. 105D 16 17 21
Accts. Receivable/S. Chang 18
Sales 19
Sales Tax Payable
31 00 20
sale no. 202B 21 22

11. GENERAL JOURNAL continued
DATE
DESCRIPTION
DEBIT PR
CREDIT 23 24
Accts. Receivable/H. Schwitzer
1,680 00 24
All the entries
involved the same
accounts!!
Sales 1, 25
Sales Tax Payable
80 00 26
sale no. 162A 27 28 29 30 31 32 33

12. 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

13. The whole transaction is Account names are not entered.
SALES JOURNAL
Page 6
Date
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 3
The whole transaction is
recorded on ONE line.
Account names are not entered. 4 5 6 7 8 9 10 11

14. Now let’s look at posting
SALES JOURNAL
Page 6
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
Date
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6 7
Now let’s look at posting
from the Sales Journal. 8 9 10 11

15. Step #1a Total the amount columns.
SALES JOURNAL
Page 6
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
Date
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7
Step #1a Total the amount columns. 8 9 10 11

16. SALES JOURNAL Step #1b Verify that the total
Page 6
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
Date
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7
Step #1b Verify that the total
of the debit column equals
the total of the credit columns. 8 9 10 11

17. SALES JOURNAL Debits $5,418 Credits $5,418 Page 6 Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
Date
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7 8
Debits
$5,418
Credits
$5,418 9 10 11

18. Step #1c Rule the columns.
SALES JOURNAL
Page 6
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
Date
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7 8
Step #1c Rule the columns. 9 10 11

19. Let’s post the Accounts Receivable total.
SALES JOURNAL
Page 6
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
Date
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7 8
Let’s post the Accounts Receivable total. 9 10 11

20. FOUR-COLUMN ACCOUNT 122 ACCOUNTS RECEIVABLE Step #2 Enter the date.
Account No.
BALANCE
DATE
ITEM PR
DR.
CR.
DR.
CR.
20--
Apr. 1
Balance
12,000 30
Step #2 Enter the date.

21. FOUR-COLUMN ACCOUNT 122 ACCOUNTS RECEIVABLE Step #3 Enter the amount.
Account No.
BALANCE
DATE
ITEM PR
DR.
CR.
DR.
CR.
20--
Apr. 1
Balance
12,000 30
5,418
Step #3 Enter the amount.

22. Step #4 Enter the new balance.
FOUR-COLUMN ACCOUNT
122
ACCOUNTS RECEIVABLE
Account:
Account No.
BALANCE
DATE
ITEM PR
DR.
CR.
DR.
CR.
20--
Apr. 1
Balance
12,000 30
5,418
17,418
Step #4 Enter the new balance.

23. Step #5 Enter “S” for Sales Journal and the journal page number.
FOUR-COLUMN ACCOUNT
122
ACCOUNTS RECEIVABLE
Account:
Account No.
BALANCE
DATE
ITEM PR
DR.
CR.
DR.
CR.
20--
Apr. 1
Balance
12,000 30 S6
5,418
17,418
Step #5 Enter “S” for Sales Journal
and the journal page number.

24. Step #6 Enter the account number below the column total.
SALES JOURNAL
Page 6
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
Date
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7
(122) 8
Step #6 Enter the account
number below the column total. 9 10 11

25. SALES JOURNAL Steps #2 - #6 will be repeated for the
Page 6
Date
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7
(122)
(401)
(231) 8
Steps #2 - #6 will be repeated for the
Sales and Sales Tax Payable columns. 9 10 11

26. SALES JOURNAL A company that does not charge
Page 1
Date
Sale No.
To Whom Sold PR
Accts. Receivable Debit/Sales Credit 1 2 3 4
A company that does not charge
sales tax, such as a wholesaler,
will use a single column Sales Journal. 5 6 7 8 9 10 11

27. SALES JOURNAL Each transaction must also be posted
Page 6
Date
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
20-- 1
Apr 4
133C
Enrico Lorenzo
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7
(122)
(401)
(231) 8
Each transaction must also be posted
to the Accounts Receivable ledger. 9 10 11

28. ACCOUNTS RECEIVABLE LEDGER
Name:
Enrico Lorenzo
Address:
5240 Tousley Court, Indianapolis, IN
BALANCE
DATE
ITEM PR
DEBIT
CREDIT
20--
Apr. 4 S6
1,596
1,596
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.

29. SALES JOURNAL “ /” is entered to indicate the
Page 6
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
Date
20-- 1
Apr 4
133C
Enrico Lorenzo
( / )
1,596
1,520 76 2 10
134C
Brenda Myers
462
440 22 3 18
105D
Edith Walton
1,029
980 49 4 21
202B
Susan Chang
651
620 31 5 24
162A
Heidi Schwitzer
1,680
1,600 80 6
5,418
5,160
258 7
(122)
(401)
(231) 8
“ /” is entered to indicate the
transaction has been posted to
the Accounts Receivable ledger. 9 10 11

30. The other sales are posted to the Accounts Receivable ledger
SALES JOURNAL
Page 6
Date
Sale No.
To Whom Sold PR
Accts. Rec. Debit
Sales Credit
Sales Tax Pay. Credit
20-- 1
Apr 4
133C
Enrico Lorenzo
( / )
1,596
1,520 76 2 10
134C
Brenda Myers
( / )
462
440 22 3 18
105D
Edith Walton
( / )
1,029
980 49 4 21
202B
Susan Chang
( / )
651
620 31 5 24
162A
Heidi Schwitzer
( / )
1,680
1,600 80 6
5,418
5,160
258 7
(122)
(401)
(231) 8
The other sales are posted to the
Accounts Receivable ledger
in the same manner. 9 10 11

31. 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)

32. EXAMPLE: April 14, received cash on account from Enrico Lorenzo
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit 1 2 3
EXAMPLE: April 14, received cash
on account from Enrico Lorenzo
for sale no. 133C, $1,596. 4 5 6 7 8 9 10 11

33. CASH RECEIPTS JOURNAL Step #1 Enter date. Page 7 Date Account CreditedPR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14 2 3 4
Step #1 Enter date. 5 6 7 8 9 10 11

34. Step #2 Enter name of account credited.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo 2 3 4
Step #2 Enter name of account credited. 5 6 7 8 9 10 11

35. CASH RECEIPTS JOURNAL This column is used for two purposes:
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo 2 3
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. 4 5 6 7 8 9 10 11

36. Step #3 Enter the dollar amount.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 3 4
Step #3 Enter the dollar amount. 5 6 7 8 9 10 11

37. CASH RECEIPTS JOURNAL Page 7 General Credit Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2 3 4 5 6 7 8 9 10 11

38. Cash was also received on account on April 20th and 28th.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 4 5
Cash was also received on
account on April 20th and 28th. 6 7 8 9 10 11

39. CASH RECEIPTS JOURNAL Page 7 General Credit Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3 4 5 6 7 8 9 10 11

40. CASH RECEIPTS JOURNAL Page 7 Date Account Credited PR General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 5 6 7 8 9 10 11

41. CASH RECEIPTS JOURNAL Page 7 General Credit Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4 5 6 7 8 9 10 11

42. Now let’s journalize cash sales for April 30th
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 5
Now let’s journalize cash sales for April 30th
of $3,600 plus tax of $180. 6 7 8 9 10 11

43. This column is left blank for cash sales.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5
This column is left blank for cash sales. 6 7 8 9 10 11

44. CASH RECEIPTS JOURNAL + = 3,600 180 3,780 Total Credits = Total Debits
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5 6 +
3,600
180 =
3,780 7 8
Total Credits = Total Debits 9 10 11

45. CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 7
Bank credit card sales are similar to cash sales,
no entry is made in the “Account Credited”
column. 8 9 10 11

46. Bank Credit Card Sales of $2,500
CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500 6 7
Bank Credit Card Sales of $2,500
were made this month. 8 9 10 11

47. Sales Tax on these sales was $125.
CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125 6 7
Sales Tax on these sales was $125. 8 9 10 11

48. The service charge on these bank credit card sales was $100.
CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100 6 7
The service charge on these
bank credit card sales was $100. 8 9 10 11

49. [($2,500sales + $125tax) - $100service chg].
CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,525 6 7
The cash received was $2,525
[($2,500sales + $125tax) - $100service chg]. 8 9 10 11

50. CASH RECEIPTS JOURNAL Example: April 30, received cash
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6
Example:
April 30, received cash
for rent revenue $600. 7 8 9 10 11

51. We need to credit Rent Revenue and debit Cash.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 7 8
We need to credit Rent Revenue and debit Cash. 9 10 11

52. CASH RECEIPTS JOURNAL Since there is no column for Rent Revenue,
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
600 7 8
Since there is no column for Rent Revenue,
we must use the “General Credit” column. 9 10 11

53. CASH RECEIPTS JOURNAL When the “General Credit” column is used,
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
Rent Revenue
600 7
When the “General Credit” column is used,
the “Account Credited” column must identify
the specific General Ledger account affected. 8 9 10 11

54. CASH RECEIPTS JOURNAL Page 7 General Credit Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7 8 9 10 11

55. Borrowing money would be recorded in a similar manner.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
Rent Revenue
600 7 30
Notes Payable
3,000 8
Borrowing money would be
recorded in a similar manner. 9 10 11

56. CASH RECEIPTS JOURNAL Page 7 General Credit Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7
3,000
3,000 8 9 10 11

57. CASH RECEIPTS JOURNAL On a daily basis, the amounts in the
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
Rent Revenue
600 7 30
Notes Payable
3,000 8
On a daily basis, the amounts in the
“General Credit” column are posted. 9 10 11

58. “CR” for Cash Receipts Journal.
FOUR-COLUMN ACCOUNT
412
RENT REVENUE
Account:
Account No.
BALANCE
DATE
ITEM PR
DR.
CR.
DR.
CR.
20--
Apr. 1
Balance
1,800 30
CR7
600
2,400
“CR” for Cash Receipts Journal.

59. General Ledger account number
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
Rent Revenue
412
600 7 30
Notes Payable
3,000 8
General Ledger account number 9 10 11

60. Notes Payable is posted in the same manner.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
Rent Revenue
412
600 7 30
Notes Payable
201
3,000 8
Notes Payable is posted in the same manner. 9 10 11

61. At the end of the month, the columns are totaled.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
Rent Revenue
412
600 7 30
Notes Payable
201
3,000 8
3,600
3,087 9
At the end of the month, the columns are totaled. 10 11

62. CASH RECEIPTS JOURNAL Next, we verify that the debit columns
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7
3,000
3,000 8
3,600
3,087
6,100
305
100
12,992 9
Next, we verify that the debit columns
equal the total of the credit columns. 10 11

63. CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7
3,000
3,000 8
3,600
3,087
6,100
305
100
12,992 9
$3,600 + $3,087 + $6,100 + $305 = $13,092 Credits 10 11

64. CASH RECEIPTS JOURNAL $100 + $12,992 = $13,092 Debits
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7
3,000
3,000 8
3,600
3,087
6,100
305
100
12,992 9
$100 + $12,992 = $13,092 Debits
DEBITS = CREDITS!!! 10 11

65. Each column total (except General) is posted at the end of the month.
CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7
3,000
3,000 8
3,600
3,087
6,100
305
100
12,992 9
Each column total (except General)
is posted at the end of the month. 10 11

66. “CR” for Cash Receipts Journal
FOUR-COLUMN ACCOUNT
122
ACCOUNTS RECEIVABLE
Account:
Account No.
BALANCE
DATE
ITEM PR
DR.
CR.
DR.
CR.
20--
Apr. 1
Balance
12,000 30 S6
5,418
17,418 30
CR7
3,087
14,331
“CR” for Cash Receipts Journal

67. Account Number indicates
CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7
3,000
3,000 8
3,600
3,087
6,100
305
100
12,992 9
(122)
Account Number indicates
total was posted. 10 11

68. Remaining columns are posted in the same manner.
CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7
3,000
3,000 8
3,600
3,087
6,100
305
100
12,992 9
(122)
(401)
(231)
(513)
(101) 10
Remaining columns are posted in the same manner. 11

69. “ ” indicates the column total is not posted.
CASH RECEIPTS JOURNAL
Page 7
General Credit
Accts. Rec. Credit
Sales Credit
Sales Tax Pay. Credit
Bank C C Exp. Debit
Cash Debit 1
1,596
1,596 2
462
462 3
1,029
1,029 4
3,600
180
3,780 5
2,500
125
100
2,500 6
600
600 7
3,000
3,000 8
3,600
3,087
6,100
305
100
12,992 9
( / )
(122)
(401)
(231)
(513)
(101) 10
“ ” indicates the column total is not posted.
( / ) 11

70. Postings to the subsidiary Accounts Receivable ledger are made daily.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
Rent Revenue
412
600 7 30
Notes Payable
201
3,000 8
3,600
3,087 9
Postings to the subsidiary
Accounts Receivable ledger are made daily. 10 11

71. ACCOUNTS RECEIVABLE LEDGER
Name:
Enrico Lorenzo
Address:
5240 Tousley Court, Indianapolis, IN
BALANCE
DATE
ITEM PR
DEBIT
CREDIT
20--
Apr. 4 S6
1,596
1,596 14
CR7
1,596

72. CASH RECEIPTS JOURNAL “ ” indicates transaction was posted to
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
( / )
1,596 2 20
Brenda Myers
462 3 28
Edith Walton
1,029 4 30 5 30 6 30
Rent Revenue
412
600 7 30
Notes Payable
201
3,000 8
3,600
3,087 9
“ ” indicates transaction was posted to
the Accounts Receivable subsidiary ledger.
( / ) 10 11

73. The payments by Brenda and Edith are posted in the same manner.
CASH RECEIPTS JOURNAL
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
( / )
1,596 2 20
Brenda Myers
( / )
462 3 28
Edith Walton
( / )
1,029 4 30 5 30 6 30
Rent Revenue
412
600 7 30
Notes Payable
201
3,000 8
3,600
3,087 9
The payments by Brenda and Edith
are posted in the same manner. 10 11

74. CASH RECEIPTS JOURNAL “ ” is entered into the PR column
Page 7
Date
Account Credited PR
General Credit
Accts. Rec. Credit
20-- 1
Apr 14
Enrico Lorenzo
( / )
1,596 2 20
Brenda Myers
( / )
462 3 28
Edith Walton
( / )
1,029 4 30
( / ) 5 30
( / ) 6 30
Rent Revenue
412
600 7 30
Notes Payable
201
3,000 8
3,600
3,087 9
“ ” is entered into the PR column
for cash sales and bank credit card sales.
( / ) 10 11

75. PURCHASES JOURNAL Purchases of MERCHANDISE for resale Only ON ACCOUNT
Cash purchases would be recorded in the Cash Payments Journal.
Single column format
Purchases Debit/Accounts Payable Credit, OR
Three column
Purchases Debit, Freight-In Debit, Accounts Payable Credit

76. For our example, we will use a single column Purchases Journal.
Page 8
Date
Invoice No.
From Whom Purchased PR
Purchases Debit/ Accounts Payable Credit 1 2 3 4
For our example, we will use
a single column Purchases Journal. 5 6 7 8 9 10 11

77. PURCHASES JOURNAL Example: On April 4th, purchased
Page 8
Date
Invoice No.
From Whom Purchased PR
Purchases Debit/ Accounts Payable Credit
20-- 1
Apr 4
631
Compucraft, Inc.
3,300 2 3 4
Example: On April 4th, purchased
merchandise from Compucraft, Inc. $3,300
Invoice no. 631, dated April 2, n/30. 5 6 7 8 9 10 11

78. All purchases transactions
PURCHASES JOURNAL
Page 8
Date
Invoice No.
From Whom Purchased PR
Purchases Debit/ Accounts Payable Credit
20-- 1
Apr 4
631
Compucraft, Inc.
3,300 2 8
927D
Datasoft
2,500 3 11
804
EZX Corp.
8,700 4 17
611
Printpro Corp.
800 5 23
1465
Televax, Inc.
5,300 6 7
All purchases transactions
are journalized in
the same manner. 8 9 10 11

79. General Ledger accounts.
PURCHASES JOURNAL
Page 8
Date
Invoice No.
From Whom Purchased PR
Purchases Debit/ Accounts Payable Credit
20-- 1
Apr 4
631
Compucraft, Inc.
3,300 2 8
927D
Datasoft
2,500 3 11
804
EZX Corp.
8,700 4 17
611
Printpro Corp.
800 5 23
1465
Televax, Inc.
5,300 6
20,600 7
At the end of the month,
the column is totaled,
ruled, and posted to the
General Ledger accounts. 8 9 10 11

80. “P” for Purchases Journal
FOUR-COLUMN ACCOUNT
501
PURCHASES
Account:
Account No.
BALANCE
DATE
ITEM PR
DR.
CR.
DR.
CR.
20--
Apr. 1
Balance
( / )
17,400 30 P8
20,600
38,000
“P” for Purchases Journal

81. Account Number indicates column total has been posted.
PURCHASES JOURNAL
Page 8
Date
Invoice No.
From Whom Purchased PR
Purchases Debit/ Accounts Payable Credit
20-- 1
Apr 4
631
Compucraft, Inc.
3,300 2 8
927D
Datasoft
2,500 3 11
804
EZX Corp.
8,700 4 17
611
Printpro Corp.
800 5 23
1465
Televax, Inc.
5,300 6
20,600 7
(501) 8
Account Number indicates
column total has been posted. 9 10 11

82. FOUR-COLUMN ACCOUNT 202 ACCOUNTS PAYABLE Account: Account No. BALANCE
DATE
ITEM PR
DR.
CR.
DR.
CR.
20--
Apr. 1
Balance
( / )
4,800 30 P8
20,600
25,400

83. Transactions are posted to the Accounts Payable ledger
PURCHASES JOURNAL
Page 8
Date
Invoice No.
From Whom Purchased PR
Purchases Debit/ Accounts Payable Credit
20-- 1
Apr 4
631
Compucraft, Inc.
3,300 2 8
927D
Datasoft
2,500 3 11
804
EZX Corp.
8,700 4 17
611
Printpro Corp.
800 5 23
1465
Televax, Inc.
5,300 6
20,600 7
(501)
(202)
Transactions are posted to
the Accounts Payable ledger
on a daily basis. 8 9 10 11

84. ACCOUNTS PAYABLE LEDGER
Name:
Compucraft, Inc.
Address:
5240 Tousley Court, Indianapolis, IN
BALANCE
DATE
ITEM PR
DEBIT
CREDIT
20--
Apr. 4 P8
3,300
3,300

85. “ ” is placed in the PR column when posting is completed.
PURCHASES JOURNAL
Page 8
Date
Invoice No.
From Whom Purchased PR
Purchases Debit/ Accounts Payable Credit
20-- 1
Apr 4
631
Compucraft, Inc.
( / )
3,300 2 8
927D
Datasoft
2,500 3 11
804
EZX Corp.
8,700 4 17
611
Printpro Corp.
800 5 23
1465
Televax, Inc.
5,300 6
20,600 7
(501)
(202)
“ ” is placed in the PR column
when posting is completed. 8
( / ) 9 10 11

86. The remaining transactions are posted in the same manner.
PURCHASES JOURNAL
Page 8
Date
Invoice No.
From Whom Purchased PR
Purchases Debit/ Accounts Payable Credit
20-- 1
Apr 4
631
Compucraft, Inc.
( / )
3,300 2 8
927D
Datasoft
( / )
2,500 3 11
804
EZX Corp.
( / )
8,700 4 17
611
Printpro Corp.
( / )
800 5 23
1465
Televax, Inc.
( / )
5,300 6
20,600 7
(501)
(202)
The remaining transactions
are posted in the same manner. 8 9 10 11

87. 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.

88. Example: Payment of rent, $2,400 on April 2
CASH PAYMENTS JOURNAL
Page 12
Date
Check No.
Account Debited PR
General Debit 1 2 3 4
Example: Payment of rent, $2,400 on April 2 5 6 7 8 9 10 11

89. CASH PAYMENTS JOURNAL All cash payments (except those
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307 2 3 4
All cash payments (except those
from Petty Cash) should be made
by check for good internal control. 5 6 7 8 9 10 11

90. CASH PAYMENTS JOURNAL This column is used for two purposes:
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
2,400 2 3 4
This column is used for two purposes:
1. To identify a supplier name for
any payment on account
2. To enter the appropriate account name
whenever the “General Debit”
column is used 5 6 7 8 9 10 11

91. CASH PAYMENTS JOURNAL Page 12 General Debit Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2 3 4 5 6 7 8 9 10 11

92. Example: On April 4 $1,400 of merchandise
CASH PAYMENTS JOURNAL
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
2,400 2 4
308 3 4
Example: On April 4 $1,400 of merchandise
was purchased for cash. 5 6 7 8 9 10 11

93. CASH PAYMENTS JOURNAL Page 12 General Debit Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2
1,400
1,400 3 4 5 6 7 8 9 10 11

94. Example: On April 10 payment was
CASH PAYMENTS JOURNAL
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
2,400 2 4
308 3 10
309
B.B. Small 4 5
Example: On April 10 payment was
made on account, $4,800. 6 7 8 9 10 11

95. CASH PAYMENTS JOURNAL Page 12 General Debit Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2
1,400
1,400 3
4,800
4,800 4 5 6 7 8 9 10 11

96. Example: On April 14 payment was
CASH PAYMENTS JOURNAL
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
2,400 2 4
308 3 10
309
B.B. Small 4 14
310
Notes Payable
2,000 5
Example: On April 14 payment was
made on a note payable, $2,000. 6 7 8 9 10 11

97. CASH PAYMENTS JOURNAL Page 12 General Debit Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2
1,400
1,400 3
4,800
4,800 4
2,000
2,000 5 6 7 8 9 10 11

98. Example: On April 22 owner withdrew
CASH PAYMENTS JOURNAL
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
2,400 2 4
308 3 10
309
B.B. Small 4 14
310
Notes Payable
2,000 5 22
311
Gary L. Fishel, Drawing
1,600 6
Example: On April 22 owner withdrew
cash for personal use, $1,600. 7 8 9 10 11

99. CASH PAYMENTS JOURNAL Page 12 General Debit Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2
1,400
1,400 3
4,800
4,800 4
2,000
2,000 5
1,600
1,600 6 7 8 9 10 11

100. CASH PAYMENTS JOURNAL Example: On April 24 made payment
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
2,400 2 4
308 3 10
309
B.B. Small 4 14
310
Notes Payable
2,000 5 22
311
Gary L. Fishel, Drawing
1,600 6 24
312
EZX Corp. 7
Example: On April 24 made payment
on account within the discount period. 8 9 10 11

101. CASH PAYMENTS JOURNAL Page 12 General Debit Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2
1,400
1,400 3
4,800
4,800 4
2,000
2,000 5
1,600
1,600 6
8,700 87
8,613 7 8 9 10 11

102. CASH PAYMENTS JOURNAL On a daily basis, the amounts in the
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
2,400 2 4
308 3 10
309
B.B. Small 4 14
310
Notes Payable
2,000 5 22
311
Gary L. Fishel, Drawing
1,600 6 24
312
EZX Corp. 7
On a daily basis, the amounts in the
“General Debit” column are posted. 8 9 10 11

103. CASH PAYMENTS JOURNAL “CP” for Cash Payments journal is entered
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
521
2,400 2 4
308 3 10
309
B.B. Small 4 14
310
Notes Payable
201
2,000 5 22
311
Gary L. Fishel, Drawing
312
1,600 6 24
312
EZX Corp. 7
“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. 8 9 10 11

104. CASH PAYMENTS JOURNAL At the end of the month, the columns are
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
521
2,400 2 4
308 3 10
309
B.B. Small 4 14
310
Notes Payable
201
2,000 5 22
311
Gary L. Fishel, Drawing
312
1,600 6 24
312
EZX Corp. 7
6,000
At the end of the month, the columns are
totaled, equality of debits and credits
is verified, and totals are posted
to the General Ledger. 8 9 10 11

105. CASH PAYMENTS JOURNAL 20,900 20,900 6,000 + 13,500 + 87 + 1,400 20,813
Page 12
General Debit
Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2
1,400
1,400 3
4,800
4,800 4
2,000
2,000 5
1,600
1,600 6
8,700 87
8,613 7
6,000
13,500
1,400 87
20,813 8
6,000 +
13,500 +
87 + 9
1,400
20,813 10 =
20,900 =
20,900 11

106. “ ” indicates the column
CASH PAYMENTS JOURNAL
Page 12
General Debit
Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2
1,400
1,400 3
4,800
4,800 4
2,000
2,000 5
1,600
1,600 6
8,700 87
8,613 7
6,000
13,500
1,400 87
20,813 8
( / ) 9
“ ” indicates the column
should not be posted.
( / ) 10 11

107. Account numbers indicate
CASH PAYMENTS JOURNAL
Page 12
General Debit
Accts. Pay. Debit
Purchases Debit
Purch. Disc. Credit
Cash Credit 1
2,400
2,400 2
1,400
1,400 3
4,800
4,800 4
2,000
2,000 5
1,600
1,600 6
8,700 87
8,613 7
6,000
13,500
1,400 87
20,813 8
( / )
(202)
(501)
(501.2)
(101) 9
Account numbers indicate
the totals were posted. 10 11

108. Transactions affecting the Accounts Payable ledger are posted daily.
CASH PAYMENTS JOURNAL
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
521
2,400 2 4
308 3 10
309
B.B. Small 4 14
310
Notes Payable
201
2,000 5 22
311
Gary L. Fishel, Drawing
312
1,600 6 24
312
EZX Corp. 7
6,000 8
Transactions affecting the
Accounts Payable ledger are posted daily. 9 10 11

109. “ ” is entered to indicate the transaction has been posted.
CASH PAYMENTS JOURNAL
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
521
2,400 2 4
308 3 10
309
B.B. Small
( / ) 4 14
310
Notes Payable
201
2,000 5 22
311
Gary L. Fishel, Drawing
312
1,600 6 24
312
EZX Corp.
( / ) 7
6,000 8
“ ” is entered to indicate the
transaction has been posted. 9 10 11

110. CASH PAYMENTS JOURNAL “ ” is also entered for transactions
Page 12
Date
Check No.
Account Debited PR
General Debit
20-- 1
Apr. 2
307
Rent Expense
521
2,400 2 4
308
( / ) 3 10
309
B.B. Small
( / ) 4 14
310
Notes Payable
201
2,000 5 22
311
Gary L. Fishel, Drawing
312
1,600 6 24
312
EZX Corp.
( / ) 7
6,000 8
“ ” is also entered for transactions
that do not require individual postings. 9
( / ) 10 11