Copyright  2006 Pearson Education Canada Inc. 7-1

Copyright  2006 Pearson Education Canada Inc. 7-2 Outline  Special Purpose Journals  The General Journal  How to Use Special Purpose Journals  The Sales Journal, Purchases Journal, Cash Recipts Journal, and Cash Disbursement Journal  Subsidiary Ledgers/Control Accounts  The Guest Ledger & the City Ledger  The Cashier’s Daily Report & Other Frequently Used Journals  The Night Auditor  Computers and the Traditional Accounting Process

Copyright  2006 Pearson Education Canada Inc. 7-3 Special Purpose Journals  Frequently occurring transactions are journalized in only one journal  Special Journals are set up to meet the needs of the organization

Copyright  2006 Pearson Education Canada Inc. 7-4 Special Purpose Journals

Copyright  2006 Pearson Education Canada Inc. 7-5 The General Journal

Copyright  2006 Pearson Education Canada Inc. 7-6 How to use Special Purpose Journals Transactions are entered daily or weekly in chronological order They are self- balancing Dr = Cr

Copyright  2006 Pearson Education Canada Inc. 7-7 Sales Journal Accounts Receivable Rooms Sales Food Sales Beverage Sales Other income To record sales for the week

Copyright  2006 Pearson Education Canada Inc. 7-8 Purchases Journal - Food Inventory Beverage Inventory Housekeeping Supplies Inventory Utilities Expense Equipment Accounts Payable

Copyright  2006 Pearson Education Canada Inc. 7-9 Cash Receipts Journal- Cash Accounts Receivable Notes Payable Common Stock

Copyright  2006 Pearson Education Canada Inc Cash Disbursements Journal- Record all transactions involving money going out. Accounts Payable Discounts Housekeeping Supplies Equipment Cash.

Copyright  2006 Pearson Education Canada Inc Subsidiary Ledgers/Control Accounts Control Accounts- General Ledger accounts that control information on subsidiary ledgers Subsidiary Ledgers A/R SUBSIDIARY LEDGER A/P SUBSIDIARY LEDGER

Copyright  2006 Pearson Education Canada Inc Subsidiary Ledgers/Control Accounts Provide additional detail of control accounts found in the General Ledger Control Accounts General Ledger accounts that control information on subsidiary ledgers A/R Subsidiary Ledger Provide detail for each customer account A/P Subsidiary Ledger Provides detail for each vendor account

Copyright  2006 Pearson Education Canada Inc Guest Ledger and City Ledger Guest Ledger  Includes all the folios of guests who are still at the hotel  Guests will pay their bills before they leave the hotel City Ledger  Includes all the folios of guests who enjoy extended credit privileges with the hotel  Many corporations have city ledger accounts  Credit card accounts are included

Copyright  2006 Pearson Education Canada Inc The Cashier’s Daily Report and Other Frequently Used Journals  Cashier’s Daily Report used to reconcile sales with receipts and provide the necessary cash sales information for recording in the cash receipts journal  Transfer Journal used to record transfers or charges between two guests or to transfer charges from one ledger to another  City Journal used by the front desk to record charges to be transferred to individual city ledger cards

Copyright  2006 Pearson Education Canada Inc The Night Auditor  Verifies that all guest charges and payments are posted to clients’ accounts  Prepares daily transcript  Reconciles guest charges and credit card sales and posts to each client’s subsidiary ledger account

Copyright  2006 Pearson Education Canada Inc Computers and the Traditional Accounting Process  Computers expedite the accounting process  Point of sale computers enable sales clerks to record transactions at the very moment of the sale  Managers must still understand the accounting process