Professional Documents
Culture Documents
Chapter 3:
The day books and the journal
2
The journal
3
The purchases
daybook
Records of all the invoices received by
a business from its credit suppliers
Supplier’s
Net Sales tax Gross
Date Details account
amount amount amount
number
The total of the net amount, sales tax amount and gross
amount columns should add across (cross-casting)
The General
Ledger
Supplier’s
Gross
Post to account Details
PDB amount
number
The control account equal to the sum of the ledger balances will
reduce the chance of errors in the postings
9
The sales
daybook
Records of all the invoices issued by a
business to its credit customers before
they are sent out to customers
Customer’s
Net Sales tax Gross
Date Details account
amount amount amount
number
The total of the net amount, sales tax amount and gross
amount columns should add across (cross-casting)
The General
Ledger
Customer’s
Gross
Post to account Details
SDB number
amount
The control account equal to the sum of the ledger balances will
reduce the chance of errors in the postings
14
Example
A Ltd 1,800
B Ltd 1,500
C Ltd 652
Total 3,952
4,225
17
Total
Sales Dr Sales
returns Cr Receivables control account
daybook Individual lines
Posting Cr Individual customers’
from accounts
daybook
Total
to ledger
Purchases Dr Payables control account
returns Cr Purchases
daybook Individual lines
Dr Individual suppliers’
accounts
18
The journal
Correction of errors
The journal
Example
Example
A business is owed from ABC Ltd $1,400 in the receivables ledger
A business owed to ABC Ltd $1,600 which in the payables ledger
(ABC Ltd is both a customer and a supplier)
The two amounts can be offset and only $200 needs to be paid
to ABC Ltd.