UNIT 7

ACCOUNTING

SYSTEMS

Accounting Systems are designed to eliminate much of the duplication involved in a manual accounting system. Using carbonized receipts, special journals as shown here, and ledger cards allow for much of the accounting

work to be accomplished as receipts are processed and checks written. Special journals are important because they provide the basis for computerized accounting systems.

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Special Journal: Purchases Journal is used for Credit Purchases Sales Journal is for Credit Sales Cash Payments Journal is used when Cash is Credited Cash Receipts Journal is used when Cash is Debited
Note: Only credit purchases are allowed in the Purchase Journal.
JOURNAL

Note: The following transactions were originally recorded in the General Journal on page 30. In this section, when possible, they have been recorded in special journals. The abbreviation of the journal used follows each transaction. 1/3 1/7 1/11 1/12 1/14 1/18 1/24 Purchased merchandise for $4,000 on credit from L. Company, invoice dated 1/1, terms 2/10,n30. PJ Return $500 of defective merchandise purchased 1/1 from L. Company. GJ Paid L. Company for purchases of 1/1 less return and discount. CPJ DA'IE Recorded Cash Sales of $2,000. CRJ 1/3 Sold $5,000 of merchandise to M. company termS 2/10,n30. SJ 2/2 M. Company returned $100 of merchandise purchased 1/14. GJ M. Company paid for sale of 1/14 less return and discount. CRJ
CASH PA"2MENTS JOURNAL

PURCHASES

Page 1
POST REF. ,/
./

ACCOUNT L. Company Z. Company

'IERMS 2/10,n30 1/10,n30

AMOUNT 4,000
7,960 (51) (31)

Page 1
DEBITS

DATE I EXPLANATIOO
1/11 2/28 2/28 3/5
I

Paid Paid Paid Paid

L. Co. Z. Co. Trans. Travel - In

II

I'RRTl

TS
PURCHASE

POST
./ ./

ACCOUNTS

CASH DISCOUNTS REF. 1 2 3 4 3,430 4,000 50 --ZQQ 7,680

(1)

PAYABLE 3,500 3,960

PURCHASES

TRAVEL EXPENSE

OTHER DEBITS Purchase Discount Lost Trans. In

REF. POST

AMOUNT
I

70

70 55
I

40 50 90
I

70
(53)
I

7,460
(31)

2QQ. 200
(68)

Note: When posting, place the number of the ledger account below the amount posted. A check (./) should be placed in the Post Reference Column to indicate posting to a Subsidiary Ledger.

GENERAL LEDGER
CASH Bal. 15,122

(1) 7.680

ACCOUNTS

RECEIVABLE
I

(3)

PURCHASES

f.5.1l

11,000
22.802
I

10,900
--1.Q.Q.

7,960
PURCHASE

RETURNS

(52)

500

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

PURCHASE PIi~
M
CO!!1PaIl A CO!!1Pany
I

{531

6.000 It~gg

6.000

5,000

TRANS~iArCN-TN (0<1
TRAVEL EXPENSES (68)

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200

PURCHASE DISCOUNT 40 I

LOST

(70)

36

2/2 Purchase $4,000of merchandise from Z. Company,terms 1/10,n30 Net Method 2/28 Paid Z. Company for purchase of 2/2 plus purchase discount lost. CPJ 2/28 Paid transportation charges of $50 for merchandise purchased 10/2. CPJ
Addi tiona.1 Transactions

used.PJ

3/1 3/2 3/5 3/30

Signed a $10,000 Note Payable with First Bank Corporation, cash deposited today. CRJ Sold $6,000 of merchandise to A. Company terms 2/10,n30. SJ Paid Travel Expense of $200. CPJ A. Company paid today. CRJ Note: The General Journal is used for Note: Only Credit Sales are allowed in the Sales Journal.
entries that do not easily fit into special journal. Also included are Adjusting, Closing, Reversing, and Correcting Entries. a
I

SALES

JOURNAL

Page1
POST REF. J' J' DATE AMOUNT 5,000 11,000 (3) (41) 1/7 1/18

GENERAL

JOURNAL

Page1
PR DR 500 500 100 100 CR

DATE 1/14 3/2

ACCOUNT M. Conpany A. Company

INVOICE NUMBER 1 2

EXPLANATION

Accounts Payable Purchase Returns

- L. Co.

31 52 42 3

Sales Returns Accounts Receivable M. Co.

CASH RECEIPTS

JOURNAL
('R1<TIIT

Page 1
CASH SALES 2,000 OTHER I POST CREDITS REF.

1/12 1/24 3/1 3/30

DEBT'i'

EXPLANATION

CASH 2,000 4,802 10,000

22,802 (1)

SALES DISCOUNTS 98
98 (43)

POST REF. J' J'

I

ACCOUNTS

RECEIVABLE 4,900
I
i

AMOUNT

Weekly Sales M. Company Signed Note A. Company

....hQ.QQ
10,900 (3) 2,000 (40)

Notes Payable
I

32
I

10,000
10,000
I (32)

CASH SALES

(40)

2,000
(41)

Darin

s Music

Emporium

ACCOUNTS PAYABLE 7,460 I 7,960 ~ ~ Bal. -0NOTES PAYABLE

I

(31)

CREDIT

SALES

Trial Balance March 31, 1996

11,000

Cash

$ 15,122
7,960 $ 500 70

(32)

SALES RETURNS AND ALLOWANCES (42) 100

Purchases Purchase Returns Purchase Discounts

10,000
I

f.Ul
ACCOCINTS PAYABLE SUBSIDIARY LEDGER L. CO\1:Pany Z. Corqpany

=~ir

50 200 Purchase Discount Lost 40 Notes Payable Cash Sales Credit Sales Sales Returns and 100 Allowances Sales Discounts ~ ~5JQ

Transportation-In TravelExpense

10,000 2,000 11,000

~570

4.000
I

4,000

3.960

3.960

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