Ch. 16: Special Journals: Sales and Cash Receipts
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Transcript of Ch. 16: Special Journals: Sales and Cash Receipts
Ch. 16: Special Journals: Sales and Cash ReceiptsAccounting IIMs. Alltucker
Special Journals: Sales and Cash Receipts Learning objectives
Identify the special journals and explain how they are used in a merchandising business
Record transactions in sales and cash receipts journals Post from the sales and cash receipts journals to
customer accounts in the Acc/Rec subsidiary ledger Foot, prove, total, and rule the sales and cash receipts
journals Post column totals from the sales and cash receipts
journals to general ledger accounts Prepare a schedule for the accounts receivable
subsidiary ledger Define the accounting terms in this chapter
Section 1: The Sales Journal What you will learn:
To identify the special journals and how they are used How to record sales of merchandise on account in a
sales journal How to post from the sales journal to the acc/rec.
subsidiary ledger accounts How to foot, prove, total, and rule the sales journal How to post column totals from the sales journal to
general ledger Why it’s important:
The use of the sales journal provides a systematic method of keeping track of sales on account.
The Sales Journal
In Accounting I: Each transaction required at least 3 lines
in the journal▪ Debit account▪ Credit account▪ Source document
In Accounting II: To improve efficiency many
merchandising businesses use special journals
Special Journals Amount columns used to record debits and
credits to specific general ledger accounts Most transactions are recorded on one line Simplify the journalizing and posting process The four most commonly used special journals
are: Sales sales of merchandise on account Cash Receipts Journal receipt of cash Purchases journal purchase of any asset on
account Cash payments journal payment of cash, including
check
Sales Journal
Special journal used to record sales of merchandise on account
Record the amount of the merchandise sold on account
Record the amount of sales tax onthe sale
Record the total amount to be received from the customer on account
Recording Sales of Merchandise on Account
Business Transaction
JOURNAL ENTRY
On December 1, On Your Mark sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50.
Sales of Merchandise on Account 1. enter date 2. enter sales slip number 3. enter the name of customer in customer in the
“Customer’s Account Debited” column 4. Enter the total of the merchandise sold in sales
credit column 5. enter amount of sales tax in sales tax payable credit 6. enter the total amount to be received in Acct/Rec
debit column
Posting a Sales Journal Entry to Subsidiary ledger 1. enter date of transaction 2. in Post Ref enter “S” and page number “S1” 3. Debit column of subsidiary ledger account enter total
amount to be received 4. Compute new balance and enter it in the balance column 5. enter the check mark in the post reference column in journal
Completing the Sales Journal All special journals have amount columns used
to record debit and credits to specific general ledger accounts Simplify posting Instead of posting each transaction separately to
general ledger, only amount column totals are posted
Column totals to be posted:▪ Sales credit▪ Sales tax payable credit▪ Accounts receivable debit▪ **only three postings are made to the general ledger from the sales
journal
Footing, Totaling, Proving, and Ruling the Sales Journal 1. Draw a single line across the three columns 2. Foot the amount columns—column totals
written small 3. On a separate piece of paper—test equality of
debits and credits 4. Enter the current date and write “Totals” 5. Enter column totals in ink, just below the
footing 6. Double rule the three column amounts 7. After footing, totaling, proving, ruling—post
totals to the general ledger Refer to page 423-424 for an example
Footing, Totaling, Proving, and Ruling the Sales Journal
Posting the Totals of the Sales Credit Column 1.In “Sales” ledger—enter the date of the
totals 2. enter the sales journal letter and page
number “S2” 3. In credit column, enter the total from sales
credit column from sales journal 4. Compute new balance in ledger 5. Return to sales journal and enter the Sales
account number below the double rule in the Sales credit column—in parentheses
See page 424-425 for an example in your book
Posting the Totals of the Sales Credit Column
Posting the Total of the Sales Tax Payable Credit Column 1. Enter the date in the ledger 2. enter the sales journal page number
“S2” 3. In the credit column, enter the total
from Sales Tax Payable Credit column from Sales journal
4. Compute new balance 5. Return to sales journal and enter the
account number below the column total 6. Refer to page 425-426 for an example
Posting the Totals of the Sales Tax Payable Credit Column
Posting the Totals of the Accounts Receivable Debit Column
The last amount to be posted is the Accounts Receivable Debit Column
Proving the Sales Journal at the End of a Page All special journals are totaled and
proved and the end of every month If a business has more transactions
than one page in one month—the page needs to be totaled and proved before continuing
Refer to page 427 for an example
Proving the Sales Journal at the End of a Page 1. Draw a single line across the three columns 2. enter date of last transaction 3. write “Carried Forward” in customer column 4. Place a check mark in the post reference column
—indicates that these totals are not to be posted 5. enter the column totals in ink—DO NOT DOUBLE
RULE THE COLUMN TOTALS 6. On the next page, enter the new page number 7. On lines 1 and 2 enter the complete date 8. Write “Brought Forward” in account column 9. Place a check mark in the post reference column 10. Enter the column totals from the previous page
Proving the Sales Journal at the End of a Page