1. Lecture 18 Chapter 5 Accounting Systems

2. Review of Lecture

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.

6. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456

7. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 2010 Mar. 2615MyMusicClub.com 2 2 0 0

8. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 2010

9. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 2010

10. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 Accounts Receivable Subsidiary Ledger Date Item P.R. Debit CreditBalance MyMusicClub.com Mar. 2R352,2002,200 2010

11. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 Accounts Receivable Subsidiary Ledger Date Item P.R. Debit CreditBalance MyMusicClub.com Mar. 2R352,2002,200 2010 This procedure is repeated for each posting to the accounts receivable subsidiary ledger. 2010

12. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 6616Zone.com1 7 5 0 18617Web Cantina2 6 5 0 27618MyMusicClub.com3 0 0 0 2010

13. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 6616Zone.com1 7 5 0 18617Web Cantina2 6 5 0 27618MyMusicClub.com3 0 0 0 319 6 0 0 2010

14. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 6616Zone.com1 7 5 0 18617Web Cantina2 6 5 0 27618MyMusicClub.com3 0 0 0 319 6 0 0 2010

15. ACCOUNT Accounts Receivable Account No. 12 Balance Dr. Cr. Date Dr.Cr. Item Post. Ref. 2010 Mar.1Balance3 400 GENERAL LEDGER 319 60013 000 R35 Revenue Journal, page 35

16. By placing the account number here, we indicate that Rs. 9,600 has been debited to Accounts Receivable in the general ledger. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 6616Zone.com1 7 5 0 18617Web Cantina2 6 5 0 27618MyMusicClub.com3 0 0 0 319 6 0 0 (12)(41) 2010

17. ACCOUNT Fees Earned Account No. 41 Balance Dr. Cr. Date Dr.Cr. Item Post. Ref. GENERAL LEDGER 2010 Mar. 31R359 6 0 09 6 0 0

18. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615MyMusicClub.com 2 2 0 0 6616Zone.com1 7 5 0 18617Web Cantina2 6 5 0 27618MyMusicClub.com3 0 0 0 319 6 0 0 (12)(41) Placing “41” here indicates that Rs.9,600 has been posted to the credit side of Fees Earned in the general ledger. 2010

19. Review of Lecture

20. End of Lecture 18