Accounting Special Accounting Special JournalsJournals
Georgia CTAE Resource NetworkGeorgia CTAE Resource NetworkInstructional Resources OfficeInstructional Resources Office
Written by: Dr. Marilynn K. SkinnerWritten by: Dr. Marilynn K. SkinnerMay 2009May 2009
Transactions Special Journal (Abbrevviation)Sales on credit Sales Journal (S)Purchases on credit Purchases Journal (P)Cash receipts Cash Receipts Journal (CR)Cash Payments Cash Payments Journal (CP)
Transactions Special Journal (Abbrevviation)Sales on credit Sales Journal (S)Purchases on credit Purchases Journal (P)Cash receipts Cash Receipts Journal (CR)Cash Payments Cash Payments Journal (CP)
Special JournalsSpecial Journals
Special journals Special journals – organizing transactions into organizing transactions into
common groups and require less common groups and require less time and effort for postingtime and effort for posting
Subsidiary LedgersSubsidiary Ledgers
Subsidiary ledgers are a listing of Subsidiary ledgers are a listing of individual accounts with common individual accounts with common characteristicscharacteristics– Accounts receivable ledgersAccounts receivable ledgers– Accounts payable ledgersAccounts payable ledgers– … …
Accounts Receivable LedgerAccounts Receivable Ledger
ACCOUNTS RECEIVABLE LEDGER
A Company
Date PR Debit Credit Balance
Jan. 1 S5 500 500
ACCOUNTS RECEIVABLE LEDGER
A Company
Date PR Debit Credit Balance
Jan. 1 S5 500 500
ACCOUNTS RECEIVABLE LEDGER
B Company
Date PR Debit Credit Balance
Jan. 16 S5 1,000 1,000
ACCOUNTS RECEIVABLE LEDGER
B Company
Date PR Debit Credit Balance
Jan. 16 S5 1,000 1,000
ACCOUNTS RECEIVABLE LEDGER
C Company
Date PR Debit Credit Balance
Jan. 25 S5 415 415
ACCOUNTS RECEIVABLE LEDGER
C Company
Date PR Debit Credit Balance
Jan. 25 S5 415 415
General ledgerGeneral ledger
General ledger is the principal ledger, General ledger is the principal ledger, which contains all of the balance sheet which contains all of the balance sheet and income statement accountsand income statement accounts
Each subsidiary ledger is represented in Each subsidiary ledger is represented in the general ledger by a summarizing the general ledger by a summarizing account, called a account, called a controlling accountcontrolling account
The balance in the controlling accounts The balance in the controlling accounts must equal the sum of the balances in the must equal the sum of the balances in the subsidiary ledgerssubsidiary ledgers
General ledger & subsidiary ledgersGeneral ledger & subsidiary ledgers
Accounts ReceivableAccounts Receivable(controlling account)(controlling account)
Accounts ReceivableAccounts Receivable(controlling account)(controlling account)
Accounts PayableAccounts Payable(controlling account)(controlling account)
Accounts PayableAccounts Payable(controlling account)(controlling account)
Customer ACustomer ACustomer ACustomer A
Customer BCustomer BCustomer BCustomer B
Customer CCustomer CCustomer CCustomer C
Customer ACustomer ACustomer ACustomer A
Customer BCustomer BCustomer BCustomer B
Customer CCustomer CCustomer CCustomer C
General General ledgerledger
General General ledgerledger
SubsidiarySubsidiaryledgerledger
SubsidiarySubsidiaryledgerledger
Subsidiary Subsidiary BalancesBalances
Subsidiary Subsidiary BalancesBalances
Controlling Controlling BalanceBalance
Controlling Controlling BalanceBalance
ACCOUNTS RECEIVABLE LEDGER
A Company
Date PR Debit Credit Balance
Jan. 1 S5 500 500
ACCOUNTS RECEIVABLE LEDGER
A Company
Date PR Debit Credit Balance
Jan. 1 S5 500 500ACCOUNTS RECEIVABLE LEDGER
B Company
Date PR Debit Credit Balance
Jan. 16 S5 1,000 1,000
ACCOUNTS RECEIVABLE LEDGER
B Company
Date PR Debit Credit Balance
Jan. 16 S5 1,000 1,000ACCOUNTS RECEIVABLE LEDGER
C Company
Date PR Debit Credit Balance
Jan. 25 S5 415 415
ACCOUNTS RECEIVABLE LEDGER
C Company
Date PR Debit Credit Balance
Jan. 25 S5 415 415
Accounts Receivable LedgerAccounts Receivable Ledger
Sales JournalSales Journal
These two totals are posted These two totals are posted monthly to the appropriate monthly to the appropriate
accountsaccounts
These two totals are posted These two totals are posted monthly to the appropriate monthly to the appropriate
accountsaccounts
Sales JournalSales Journal
ACCOUNTS RECEIVABLE LEDGER
Jason Henry
Date PR Debit Credit Balance
Page 1
DateAccountDebited
InvoiceNumber PR
Dr. A/RCr. Sales
Dr COGSCr Inventory
2005Feb. 2 Jason Henry 307 450 315
SALES JOURNAL
Daily, each Daily, each transaction is transaction is posted to the posted to the appropriate appropriate Accounts Accounts
Receivable Receivable Ledger Ledger
account.account.
Daily, each Daily, each transaction is transaction is posted to the posted to the appropriate appropriate Accounts Accounts
Receivable Receivable Ledger Ledger
account.account.
Sales JournalSales Journal
ACCOUNTS RECEIVABLE LEDGER
Jason Henry
Date PR Debit Credit Balance
2005
Feb. 2 450 450
ACCOUNTS RECEIVABLE LEDGER
Jason Henry
Date PR Debit Credit Balance
2005
Feb. 2 450 450
Sales JournalSales Journal
ACCOUNTS RECEIVABLE LEDGER
Jason Henry
Date PR Debit Credit Balance
2005
Feb. 2 S1 450 450
Page 1
DateAccount Debited
Invoice Number PR
Dr. A/R Cr. Sales
Dr COGS Cr Inventory
2005Feb. 2 Jason Henry 307 450 315
SALES JOURNAL
The transaction The transaction has been postedhas been postedThe transaction The transaction has been postedhas been posted
Sales JournalSales Journal
Page 1
DateAccount Debited
Invoice Number PR
Dr. A/R Cr. Sales
Dr COGS Cr Inventory
2001
Feb. 2 Jason Henry 307 450 315
7 Albert Co. 308 500 355
13 Bam Moore 309 350 260
15 Paul Roth 310 200 150
SALES JOURNAL
Page 1
DateAccount Debited
Invoice Number PR
Dr. A/R Cr. Sales
Dr COGS Cr Inventory
2001
Feb. 2 Jason Henry 307 450 315
7 Albert Co. 308 500 355
13 Bam Moore 309 350 260
15 Paul Roth 310 200 150
SALES JOURNAL
Sales JournalSales Journal
On Feb. 28On Feb. 28thth , , post the post the
column total column total to Accounts to Accounts ReceivableReceivable
On Feb. 28On Feb. 28thth , , post the post the
column total column total to Accounts to Accounts ReceivableReceivable
Sales JournalSales Journal
On Feb. 28On Feb. 28thth , , post the post the
column total column total to Salesto Sales
On Feb. 28On Feb. 28thth , , post the post the
column total column total to Salesto Sales
Sales JournalSales Journal
Now post the Now post the COGS and COGS and Inventory Inventory accountsaccounts
Sales JournalSales Journal
Remember to update the Remember to update the account balances and the account balances and the
posting references posting references
Cash Receipts JournalCash Receipts Journal
Cash Receipts JournalCash Receipts Journal
Purchases JournalPurchases Journal
Amount is not posted individually to an account.Amount is posted individually to subsidiary ledger.
Acct. No. Amount is posted to specified account.
Amount is not posted individually to an account.Amount is posted individually to subsidiary ledger.
Acct. No. Amount is posted to specified account.
Cash Payments JournalCash Payments Journal
Amount is not posted individually to an account.Amount is posted individually to subsidiary ledger.
Acct. No. Amount is posted to specified account.
Amount is not posted individually to an account.Amount is posted individually to subsidiary ledger.
Acct. No. Amount is posted to specified account.
General Journal TransactionsGeneral Journal Transactions
Adjusting EntriesAdjusting Entries Reversing EntriesReversing Entries Transactions not recorded in Special Transactions not recorded in Special
JournalsJournals