1. Chapter 11 Review 11.1- Subsidiary Ledger Systems
11.2- The Synoptic Ledger
11.2- The five Journal System (NEW)

2. 11.1 – Subsidiary Ledger System
What is it?
Is a separate ledger that contains a number of accounts of a similar type, such as accounts receivable
The accounts in a subsidiary ledger make up the detailed data for one related CONTROL ACCOUNT (general ledger account related to a subsidiary ledger, example of Control Account: Accounts Receivable)
Refer to exercise #2 pg. 518 (t), pg (w)

3. 11.2 – The Synoptic Journal What is it?
Takes everyday, routine transactions and enters into a “specialized” journal that sorts items during the journalizing process.
Synoptic Journal has a number of columns to accumulate accounting entries
Saves time when posting. Only the totals of special columns are posted, therefore, only one posting for each account
Be sure to balance the Synoptic Journal (cross-balancing: grand total of all debit columns against grand total of all credit columns)
Refer to Exercise #2 pg (t), pg (w)

4. 11.2 FIVE JOURNAL ACCOUNTING SYSTEM

5. SOURCE DOCUMENTS: REFER TO OVERHEAD
Pay liabilities
Pay expense
Drawings
Buy assets
SOURCE DOCUMENTS: REFER TO OVERHEAD
Cash Sales Slips
Cash Receipts
Bank CR Memos
Sales Invoices
Credit Invoices issued
Purchase Invoices
Credit Invoices received
Cheque Copies
Bank DR Memos
Other Source Documents
(non-routine entries—adjusting/closing entries)
-correcting entries
FIVE JOURNALS
Cash Receipts Journal (C.R.J)
Sales Journal (S.J)
Ex. P. 497 (t)
Purchase Journal
(P.J) p. 498 (t)
Cash Payment Journal (C.P.J)
Ex. p. 498 (t)
General Journal
(G.J)
Bank DR
Ex p. 497 (t)
A/R
Ledger
A/P
Ledger
ALL FIVE JOURNALS ARE POSTED TO:
General
Ledger

6. 11.2 – Exercise #4 pg. 502-503 (t), pg. 405 (w)
Question: In which of the five journals would each transaction below be recorded?
TRANSACTIONS:
A cheque is issued to a supplier on account
Cheque Copy  Cash Payment
A purchase invoice is received from a supplier of merchandise
Purchase Invoice  Purchase Journal
A cheque is received on account from a customer
Cash Receipts  Cash Receipts Journal

7. Let’s Try It! Complete Exercise #3 & 4 p. 502-503 (t), p. 405 (w)
Complete Exercise # 5 p (t), p (t)
Post the subsidiary ledgers on a daily basis directly from the source documents
B) Balance and rule each of the five journals
C) Hand-in when done – you will have more time tomorrow to work on it.

8. A cash sale is made to a customer
Cash Sales Slip  Cash Receipts Journal
A sale on account is made to a customer
Sales Invoice  Sales Journal
A cheque is issued to the owner for his personal use
Cheque Copy  Cash Payment Journal
A cheque is issued to pay for wages for the period
A sales invoice is used
Sales invoice  Sales Journal (A/R Ledger)

9. A cheque is issued to pay for a cash purchase of merchandise.
A correcting entry is made to transfer a debit amount from the Supplies account to the Miscellaneous Expense account
Other Source Documents  General Journal
A cheque is issued to pay for a cash purchase of merchandise.
Cheque Copy  Cash Payment Journal
A bank debit advice for a service charge is received
Bank Debit Memo  Cash Payment Journal
A cheque is issued to a supplier on account
A cheque is issued to pay for monthly rent
A bank debit advice is received with respect to a bad cheque
Bank Debit Memo  Cash Payments Journal

10. A bank credit advice is received with respect to interest earned.
Bank Credit Memo  Cash Receipts Journal
A new typewriter is purchased and a down payment is required. A cheque is issued.
Cheque Copy  Cash Payment Journal
The owner collects a debt from a customer but keeps the money for his personal use
Withdrawal  General Journal, Cash Receipt  Cash Receipt Journal
The owner spends a sum of money out of his own pocket for a business purpose and is reimbursed by means of a cheque.
Cheque Copy  Cash Payments Journal