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Lecture 19 Chapter 5 Accounting Systems. Review of Lecture Format of Ledger with running balance Format of Ledger with running balance Special Journal.

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Presentation on theme: "Lecture 19 Chapter 5 Accounting Systems. Review of Lecture Format of Ledger with running balance Format of Ledger with running balance Special Journal."— Presentation transcript:

1 Lecture 19 Chapter 5 Accounting Systems

2 Review of Lecture Format of Ledger with running balance Format of Ledger with running balance Special Journal Special Journal Subsidiary Ledger Subsidiary Ledger Revenue Journal Revenue Journal

3 SPECIAL JOURNAL Special Journal contains records of original entry other than the general journal that are designed for recording specific types of transactions of similar nature, e.g. Sales Journal, Purchase Journal, Cash Receipts Journal, Cash Disbursements Journal

4 Subsidiary Ledger A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. The general ledger account that summarizes a subsidiary ledger's account balances is called a control account or master account. Subsidiary ledger accounts are not part of the general ledger; they are supplemental accounts that provide the detail to support the balance in a control account.

5 The Cash Receipts Journal

6 All transactions that involve the receipt of cash are recorded in the cash receipts journal.

7 Mar. 1 Rent Revenue400 400 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. Page 14 2010

8 Mar. 1 Rent Revenue400 400 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. 19 Web Cantina3,4003,400 28MyMusicClub.com2,2002,200 30 Zone.com 1,7501,750 Page 14 2010

9 Mar. 1 Rent Revenue400 400 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. 19 Web Cantina3,4003,400 28MyMusicClub.com2,2002,200 30 Zone.com 1,7501,750 Page 14 2010

10 Mar. 1 Rent Revenue400 400 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. Page 14 19 Web Cantina3,4003,400 28MyMusicClub.com2,2002,200 30 Zone.com 1,7501,750 Accounts Receivable Subsidiary Ledger Date Item P.R. Debit CreditBalance Web Cantina Mar. 1 Bal.3,400 18R352,6506,050 2010 3,400 2,650 2010 19

11 Mar. 1 Rent Revenue400 400 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. Page 14 19 Web Cantina3,4003,400 28MyMusicClub.com2,2002,200 30 Zone.com 1,7501,750 Accounts Receivable Subsidiary Ledger Date Item P.R. Debit CreditBalance Web Cantina Mar. 1 Bal.3,400 18R352,6506,050 2010 3,40019CR14 2,650 2010 

12 After all journalizing and posting to the accounts receivable subsidiary ledger for the month is complete, the columns are totaled.

13 Mar. 1 Rent Revenue400 400 19 Web Cantina  3,4003,400 28MyMusicClub.com  2,2002,200 30 Zone.com  1,7501,750 314007,3507,750 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. Page 14 2010

14 ACCOUNT Accounts Receivable Account No. 12 Balance Dr. Cr. Date Dr.Cr. Item Post. Ref. 2010 Mar.1Balance3 400 GENERAL LEDGER 31 9 600 13 000 R35 Revenue Journal, page 35

15 Mar. 1 Rent Revenue400 400 19 Web Cantina  3,4003,400 28MyMusicClub.com  2,2002,200 30 Zone.com  1,7501,750 314007,3507,750 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. Page 14 2010 Account: Accounts Receivable No. 12 GENERAL LEDGER DateItemP.R. DebitCreditBalance Mar. 1Bal  3,400 31R359,60013,000 2010

16 Mar. 1 Rent Revenue400 400 19 Web Cantina  3,4003,400 28MyMusicClub.com  2,2002,200 30 Zone.com  1,7501,750 314007,3507,750 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. Page 14 2010 Account: Accounts Receivable No. 12 GENERAL LEDGER DateItemP.R. DebitCreditBalance Mar. 1Bal  3,400 31R359,60013,000 2010 7,350 5,650 31 CR14

17 Mar. 1 Rent Revenue400 400 19 Web Cantina  3,4003,400 28MyMusicClub.com  2,2002,200 30 Zone.com  1,7501,750 314007,3507,750 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. Page 14 2010 ( ) (12) 

18 Rs.7,750 total in the Cash Debit column is posted to Cash in a similar manner.

19 Rs.400 credit to Rent Revenue could have been posted earlier, but posting it at the same time as other general ledger accounts is proper.

20 Mar. 1 Rent Revenue400 400 19 Web Cantina  3,4003,400 28MyMusicClub.com  2,2002,200 30 Zone.com  1,7501,750 314007,3507,750 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount CreditedRef.Cr.Cr.Dr. Page 14 42 ( ) (12) (11) 2010 

21 Accounts Receivable Control Account If the accounts receivable account in the general ledger only shows summary totals, where are the individual customer balances? ACCOUNT Accounts Receivable No. 12 GENERAL LEDGER DateItemP.R. DebitCreditBalance Mar. 1Bal3,400 31R359,60013,000 7,3505,650 31CR14 

22 DateItemP.R. DebitCreditBalance RapZone.com 3/6 R35 1,7501,750 -- 3/30CR141,750-- DateItemP.R. DebitCreditBalance Web Cantina DateItemP.R. DebitCreditBalance 3/2R352,200 2,200 3/27R353,000 5,200 3,000 3/28CR142,2003,000 3/1Bal. 3,400 3/18R352,6506,050 2,650 3/19CR143,4002,650  Accounts Receivable Subsidiary Ledger Accounts Receivable Control Account MyMusicClub.com ACCOUNT Accounts Receivable No. 12 GENERAL LEDGER DateItemP.R. DebitCreditBalance Mar. 1Bal3,400 31R359,60013,000 7,3505,650 31CR14 

23 End of Lecture 19

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