1. Manual Accounting Systems

2. General Ledger and Subsidiary Ledgers
Accounts Receivable
Subsidiary Ledger A B C D
Customer Accounts
Cash 11
Accts. Rec. 12
Supplies 14
Accounts Payable
Subsidiary Ledger A B C D
Creditor Accounts
Accts. Pay. 21

3. Special Journals Revenue journal Cash receipts journal
SELLING
Providing services on account
Revenue journal
recorded in
Receipt of cash from any source
Cash receipts journal
recorded in
BUYING
Purchase of items on account
Purchases journal
recorded in
Payment of cash for any purpose
Cash payments journal
recorded in

4. The Revenue Journal

5. The Revenue Journal
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
All sales on account are recorded in this journal. Each sales invoice is listed in numerical order.

6. Performed services on credit to MyMusic.com, $2,200.
The Revenue Journal
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2006
Mar MyMusicClub.com
Performed services on credit to MyMusic.com, $2,200.

7. Notice that only one line is required to make the entry.
The Revenue Journal
Revenue Journal
Page 35
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit 1 2 3 4 5 6
2006 1 2 3 4 5 6
Mar MyMusicClub.com
Notice that only one line is required to make the entry.

8. Posting from the Revenue Journal
Page 35
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit 1 2 3 4 5 6
2006 1 2 3 4 5 6
Mar MyMusicClub.com
To update the MyMusicClub.com account, the $2,200 debit is posted to the accounts receivable subsidiary ledger.

9. Posting from the Revenue Journal
Page 35
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit 1 2 3 4 5 6
2006
Mar MyMusicClub.com 1 2 3 4 5 6
Accounts Receivable Subsidiary Ledger
MyMusicClub.com
Date Item P.R. Debit Credit Balance
Mar. 2 R35 2,200 2,200
2006

10. Posting from the Revenue Journal
Page 35
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit 1 2 3 4 5 6
2006
Mar MyMusicClub.com 1 2 3 4 5 6
Accounts Receivable Subsidiary Ledger
MyMusicClub.com
Date Item P.R. Debit Credit Balance
Mar. 2 R35 2,200 2,200
2006
This procedure is repeated for each posting to the accounts receivable subsidiary ledger.

11. Posting from the Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2003
2006
Mar MyMusicClub.com
Mar MyMusicClub.com
6 616 RapZone.com
Web Cantina
MyMusicClub.com
Assume that similar entries were journalized and posted during the month of March.

12. Posting from the Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2006
Mar MyMusicClub.com
6 616 RapZone.com
Web Cantina
MyMusicClub.com
On March 31, the revenue journal is totaled and ruled.

13. Posting the Revenue Journal Total
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2006
Mar MyMusicClub.com
6 616 RapZone.com
Web Cantina
MyMusicClub.com
Next, the revenue journal’s total ($9,600) is posted to the general ledger.

14. Posting the Revenue Journal Total
GENERAL LEDGER
Accounts Receivable
ACCOUNT
Account No. 12
Balance
Post. Ref.
Date
Item
Dr.
Cr.
Dr.
Cr.
2006
Mar. 1 Balance 31
R35
Revenue Journal, page 35

15. Posting the Revenue Journal Total
Page 35
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit 1 2 3 4 5 6
2006 1 2 3 4 5 6
Mar MyMusicClub.com
6 616 RapZone.com
Web Cantina
MyMusicClub.com
By placing the account number here, we indicate that $9,600 has been debited to Accounts Receivable in the general ledger.
(12)(41)

16. Posting the Revenue Journal Total
ACCOUNT
Fees Earned
Account No. 41
Balance
Dr.
Cr.
Date
Item
Post. Ref.
GENERAL LEDGER
2006
Mar. 31 R

17. Posting the Revenue Journal Total
Page 35
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit 1 2 3 4 5 6
2006 1 2 3 4 5 6
Mar MyMusicClub.com
6 616 RapZone.com
Web Cantina
MyMusicClub.com
(12)(41)
Placing “41” here indicates that $9,600 has been posted to the credit side of Fees Earned in the general ledger.

18. The Cash Receipts Journal

19. The Cash Receipts Journal
All transactions that involve the receipt of cash are recorded in the cash receipts journal.

20. The Cash Receipts Journal
Page 14
Other Accounts
Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
2006
Mar Rent Revenue
NetSolutions received $400 cash on March 1 for the month’s rent.

21. The Cash Receipts Journal
Page 14
Other Accounts
Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
2006
Mar Rent Revenue
19 Web Cantina 3,400 3,400
28 MyMusicClub.com 2,200 2,200
30 RapZone.com 1,750 1,750
During March, NetSolutions collected cash from three customers.

22. Posting the Cash Receipts Journal
Mar Rent Revenue
CASH RECEIPTS JOURNAL
Other Accounts
Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
19 Web Cantina 3,400 3,400
28 MyMusicClub.com 2,200 2,200
30 RapZone.com 1,750 1,750
Page 14
2006
Each account under “Accounts Receivable Cr.” is posted to the accounts receivable subsidiary ledger.

23. Posting the Cash Receipts Journal
Mar Rent Revenue
CASH RECEIPTS JOURNAL
Other Accounts
Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
Page 14
19 Web Cantina 3,400 3,400
28 MyMusicClub.com 2,200 2,200
30 RapZone.com 1,750 1,750
2006
Accounts Receivable Subsidiary Ledger
Web Cantina
Date Item P.R. Debit Credit Balance
Mar. 1 Bal. 3, R35 2,650 6,050
2006 19
3,400
2,650