Accounting Special Accounting Special JournalsJournals

Georgia CTAE Resource NetworkGeorgia CTAE Resource NetworkInstructional Resources OfficeInstructional Resources Office

Written by: Dr. Marilynn K. SkinnerWritten by: Dr. Marilynn K. SkinnerMay 2009May 2009

Transactions Special Journal (Abbrevviation)Sales on credit Sales Journal (S)Purchases on credit Purchases Journal (P)Cash receipts Cash Receipts Journal (CR)Cash Payments Cash Payments Journal (CP)

Transactions Special Journal (Abbrevviation)Sales on credit Sales Journal (S)Purchases on credit Purchases Journal (P)Cash receipts Cash Receipts Journal (CR)Cash Payments Cash Payments Journal (CP)

Special JournalsSpecial Journals

Special journals Special journals – organizing transactions into organizing transactions into

common groups and require less common groups and require less time and effort for postingtime and effort for posting

Subsidiary LedgersSubsidiary Ledgers

Subsidiary ledgers are a listing of Subsidiary ledgers are a listing of individual accounts with common individual accounts with common characteristicscharacteristics– Accounts receivable ledgersAccounts receivable ledgers– Accounts payable ledgersAccounts payable ledgers– … …

Accounts Receivable LedgerAccounts Receivable Ledger

ACCOUNTS RECEIVABLE LEDGER

A Company

Date PR Debit Credit Balance

Jan. 1 S5 500 500

ACCOUNTS RECEIVABLE LEDGER

A Company

Date PR Debit Credit Balance

Jan. 1 S5 500 500

ACCOUNTS RECEIVABLE LEDGER

B Company

Date PR Debit Credit Balance

Jan. 16 S5 1,000 1,000

ACCOUNTS RECEIVABLE LEDGER

B Company

Date PR Debit Credit Balance

Jan. 16 S5 1,000 1,000

ACCOUNTS RECEIVABLE LEDGER

C Company

Date PR Debit Credit Balance

Jan. 25 S5 415 415

ACCOUNTS RECEIVABLE LEDGER

C Company

Date PR Debit Credit Balance

Jan. 25 S5 415 415

General ledgerGeneral ledger

General ledger is the principal ledger, General ledger is the principal ledger, which contains all of the balance sheet which contains all of the balance sheet and income statement accountsand income statement accounts

Each subsidiary ledger is represented in Each subsidiary ledger is represented in the general ledger by a summarizing the general ledger by a summarizing account, called a account, called a controlling accountcontrolling account

The balance in the controlling accounts The balance in the controlling accounts must equal the sum of the balances in the must equal the sum of the balances in the subsidiary ledgerssubsidiary ledgers

General ledger & subsidiary ledgersGeneral ledger & subsidiary ledgers

Accounts ReceivableAccounts Receivable(controlling account)(controlling account)

Accounts ReceivableAccounts Receivable(controlling account)(controlling account)

Accounts PayableAccounts Payable(controlling account)(controlling account)

Accounts PayableAccounts Payable(controlling account)(controlling account)

Customer ACustomer ACustomer ACustomer A

Customer BCustomer BCustomer BCustomer B

Customer CCustomer CCustomer CCustomer C

Customer ACustomer ACustomer ACustomer A

Customer BCustomer BCustomer BCustomer B

Customer CCustomer CCustomer CCustomer C

General General ledgerledger

General General ledgerledger

SubsidiarySubsidiaryledgerledger

SubsidiarySubsidiaryledgerledger

Subsidiary Subsidiary BalancesBalances

Subsidiary Subsidiary BalancesBalances

Controlling Controlling BalanceBalance

Controlling Controlling BalanceBalance

ACCOUNTS RECEIVABLE LEDGER

A Company

Date PR Debit Credit Balance

Jan. 1 S5 500 500

ACCOUNTS RECEIVABLE LEDGER

A Company

Date PR Debit Credit Balance

Jan. 1 S5 500 500ACCOUNTS RECEIVABLE LEDGER

B Company

Date PR Debit Credit Balance

Jan. 16 S5 1,000 1,000

ACCOUNTS RECEIVABLE LEDGER

B Company

Date PR Debit Credit Balance

Jan. 16 S5 1,000 1,000ACCOUNTS RECEIVABLE LEDGER

C Company

Date PR Debit Credit Balance

Jan. 25 S5 415 415

ACCOUNTS RECEIVABLE LEDGER

C Company

Date PR Debit Credit Balance

Jan. 25 S5 415 415

Accounts Receivable LedgerAccounts Receivable Ledger

Sales JournalSales Journal

These two totals are posted These two totals are posted monthly to the appropriate monthly to the appropriate

accountsaccounts

These two totals are posted These two totals are posted monthly to the appropriate monthly to the appropriate

accountsaccounts

Sales JournalSales Journal

ACCOUNTS RECEIVABLE LEDGER

Jason Henry

Date PR Debit Credit Balance

Page 1

DateAccountDebited

InvoiceNumber PR

Dr. A/RCr. Sales

Dr COGSCr Inventory

2005Feb. 2 Jason Henry 307 450 315

SALES JOURNAL

Daily, each Daily, each transaction is transaction is posted to the posted to the appropriate appropriate Accounts Accounts

Receivable Receivable Ledger Ledger

account.account.

Daily, each Daily, each transaction is transaction is posted to the posted to the appropriate appropriate Accounts Accounts

Receivable Receivable Ledger Ledger

account.account.

Sales JournalSales Journal

ACCOUNTS RECEIVABLE LEDGER

Jason Henry

Date PR Debit Credit Balance

2005

Feb. 2 450 450

ACCOUNTS RECEIVABLE LEDGER

Jason Henry

Date PR Debit Credit Balance

2005

Feb. 2 450 450

Sales JournalSales Journal

ACCOUNTS RECEIVABLE LEDGER

Jason Henry

Date PR Debit Credit Balance

2005

Feb. 2 S1 450 450

Page 1

DateAccount Debited

Invoice Number PR

Dr. A/R Cr. Sales

Dr COGS Cr Inventory

2005Feb. 2 Jason Henry 307 450 315

SALES JOURNAL

The transaction The transaction has been postedhas been postedThe transaction The transaction has been postedhas been posted

Sales JournalSales Journal

Page 1

DateAccount Debited

Invoice Number PR

Dr. A/R Cr. Sales

Dr COGS Cr Inventory

2001

Feb. 2 Jason Henry 307 450 315

7 Albert Co. 308 500 355

13 Bam Moore 309 350 260

15 Paul Roth 310 200 150

SALES JOURNAL

Page 1

DateAccount Debited

Invoice Number PR

Dr. A/R Cr. Sales

Dr COGS Cr Inventory

2001

Feb. 2 Jason Henry 307 450 315

7 Albert Co. 308 500 355

13 Bam Moore 309 350 260

15 Paul Roth 310 200 150

SALES JOURNAL

Sales JournalSales Journal

On Feb. 28On Feb. 28thth , , post the post the

column total column total to Accounts to Accounts ReceivableReceivable

On Feb. 28On Feb. 28thth , , post the post the

column total column total to Accounts to Accounts ReceivableReceivable

Sales JournalSales Journal

On Feb. 28On Feb. 28thth , , post the post the

column total column total to Salesto Sales

On Feb. 28On Feb. 28thth , , post the post the

column total column total to Salesto Sales

Sales JournalSales Journal

Now post the Now post the COGS and COGS and Inventory Inventory accountsaccounts

Sales JournalSales Journal

Remember to update the Remember to update the account balances and the account balances and the

posting references posting references

Cash Receipts JournalCash Receipts Journal

Cash Receipts JournalCash Receipts Journal

Purchases JournalPurchases Journal

Amount is not posted individually to an account.Amount is posted individually to subsidiary ledger.

Acct. No. Amount is posted to specified account.

Amount is not posted individually to an account.Amount is posted individually to subsidiary ledger.

Acct. No. Amount is posted to specified account.

Cash Payments JournalCash Payments Journal

Amount is not posted individually to an account.Amount is posted individually to subsidiary ledger.

Acct. No. Amount is posted to specified account.

Amount is not posted individually to an account.Amount is posted individually to subsidiary ledger.

Acct. No. Amount is posted to specified account.

General Journal TransactionsGeneral Journal Transactions

Adjusting EntriesAdjusting Entries Reversing EntriesReversing Entries Transactions not recorded in Special Transactions not recorded in Special

JournalsJournals