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Workshop week

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Subsidiary Ledgers
Special Journals

Special Journals
General journals can be
inefficient where there are
many transactions
Group similar transactions
together and record them in a
special purpose journal
credit sales

sales journal

credit purchases
journal

purchases

SALES JOURNAL
Records only credit sales of
inventory
Total posted to general ledger
monthly
Detail by debtor posted to subsidiary
ledger daily
Advantages
Each transaction recorded on a single
line
Entries do not require a narration

SALES JOURNAL
Sales Journal

Posted daily Pos


Invoic
Date e No

Account

t
Ref

Sales

GST
Collection
s

Accounts
Receivabl
e

Jan
2

401

R. Abbot

1 100

110

1 210

402

D. Ball

900

90

990

403

N. Camp

820

82

902

404

R. Abbot

1 410

141

1 551

19

405

A. Evans

920

92

1 012

21

406

J. Ford

850

85

935

26

407

A. Evans

1 550

155

1 705

29

408

N. Camp

750

75

825

8 300

830

9 4130

PURCHASES JOURNAL
Records only credit purchases
Can be used for items other than
inventory
Total posted to general ledger monthly
Detail by creditor posted to subsidiary
ledger daily
Advantages
as for sales journal
5

PURCHASES JOURNAL
Purchases Journal
Date Date
Recor Invoic
d
e
Jan 3

Account

Jan 2 Kirby Ltd

Terms

Account
Post Purchas
GST
s
Ref
es
Outlays Payable

n/30

1 900

190

2 090

4 Risk Ltd

n/30

1 200

120

1 320

8 Dunn
Supply

n/30

1 410

141

1 551

13

12 Dunn
Supply

n/30

1 820

182

2 002

20

18 CSR Ltd

2/10
n/30

820

82

902

24

24 Cooper
Posted
Ltdat end

2/10

ofn/30
month

900

90

990

2 810

27

26 Risk Ltd

2/10

281

3 091

CASH RECEIPTS
JOURNAL
Records all receipts of cash including
cheques
Records each receipt and total banked
Totals posted to general ledger monthly
Detail (debtors only) posted to
subsidiary ledger daily
Columns set up for common receipts

CASH RECEIPTS
JOURNAL
Cash Receipts Journal

Date

Account

Jan 3 Capital

Post
Ref
300

8 Sales

Cash at
Bank

Discount
Allowed

Sales

10 000
280

10 R. Abbot

1 078

20 D. Ball

900

900

220

220

31 Bank Loan

205

Other
Account
s
10 000

280

20 Sales

Account
s
Receiva
ble

22

1 100

2500

14978
22
1 400
1 100
NB: GST has been excluded from example to save space
(100)
(511)
(400)
(104)

2 500
12 500
8

(x)

CASH PAYMENTS
JOURNAL
Records all payments of cash
Records each payment and cheque
number
Totals posted to general ledger monthly
Detail (creditors only) posted to
subsidiary ledger daily
Columns set up for common payments

CASH PAYMENTS JOURNAL


Cash Payments Journal
Date

Account

Post
Ref

Other
Account
s

Account
s
Payable

4 Purchases
7 Rent Exp
14 Store
Equip

Purchas
es
680

Cash at
Bank
680

516

320

320

170

410

410

28 Purchases

840

29 Prepaid Ins 110

510

Discount
Receive
d

840
510

30 Kirby Ltd

1 900

1 900

30 Cooper Ltd

900

882

18

1 240
2 800
1 520
5 542
18
10
B: Cheque number and GST have been excluded from example to save
sp
(x)
(210)
(510)
(100)
(401)

Posting special journals


Only the totals of the special journals
are posted to general ledger. This
happens at the end of the month.
(The account number is placed in brackets under the
column total to show which GL account each total was
posted to)

Posting special journals


The detail is posted to the
appropriate subsidiary ledger (SL)
daily.

The SL account number, ie customer account


number for example, is placed in the Post Ref
column of the special journal to show which
account has been updated with the details of the
transaction

This detail would usually include invoice details such


as invoice date, invoice number and amount of the
transaction

Subsidiary Ledgers
Control Accounts and
Subsidiary Ledgers
Summary information
Control account (in the general ledger)

Detailed information
Subsidiary ledger - often used for
Accounts receivable
Accounts payable
Inventory
Fixed assets

General Ledger
Accounts Receivable Control
Date

Debit

Nov 1

Credit

Balanc
e

Subsidiary Ledger
P. Able
Date

6 500

Nov 1

11 600

Nov 8

Nov 30
6 900 4 700
Schedule of Accounts
Receivable
As at 30 November

Nov 16

Nov 30

P. Able

5 100

$1 800

R. Baker

2 400

D. Cane

500
$4 700

Date

Debit

Credit

3 200
1 800

5 000

3 200
R. Baker
Debit

Credit

Nov 1

Date

1 100
2 400
D. Cane
Debit

Nov 1
Nov 12

1 800
Balanc
e
1 100

Nov 3
Nov 20

Balanc
e

Credit

0
2 400
Balanc
e
2 200

900

3 14
100

Abnormal balances in subsidiary


ledgers
Overpayments by customers can lead to credit
balance in accounts receivable
If we overpay on an accounts payable this will
show a debit balance situation.
Sometimes we owe a creditor who is also our
customer In these cases we use Account Set
Off
In this case we would:
Dr Accounts payable control
Cr Accounts receivable control

Now complete the following:

Hint: Complete all

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Purchases Journal
Date

Inv
No.

Account

Term
s

2/3
408 Dye Ltd
42
462
6/3
606 R Rider
60
660
19/3 1614 D Donnelly
51
561

Post
Ref.

Purchas
es

GST
Outlays

Accounts
Payable

2/10

420

n/30
2/10

600

n/30
2/10

510

n/30
1 530
153

1 683
17
(500)

Sales Journal
Date Inv.
No.

Account

11/3

Sales

GST
Coll

R. Jetty

1 140

114

1254

990

99

1089

23/3 230

Dynamics
Ltd
Dockey Ltd

780

78

858

28/3 231

G. Peck

600

60

660

$3 510

351

3861

(400) (221)

(104)

228

14/3 229

Terms

Post
Ref.

Accounts
Rec

18

Accounts Payable Subsidiary


ledgers
Date
2/3

Date
6/3

Date
19/3

Post Ref
PJ

Post Ref
PJ

Dye Ltd
Debit
Credit
Balance

462
462

R. Rider
Debit
Credit
Balance

660
660

D Donnelly
Post Ref Debit
Credit
Balance
PJ

561
561

19

Purchases Journal
Date

Inv.
No

Account

Terms

2/3
6/3
19/3

408
606
1614

Dye Ltd
R Rider
D Donnelly

2/10,n/30
2/10,n/30
2/10,n30

Po Purcha GST Account


st
ses
Outlay
s
Re
s
Payable
f.

420
600
510
$1 530
(500)

42
60
51
153
(121)

462
660
561
1683
(201)

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Accounts Receivable
Subsidiary ledger
Date
11/3

Date
14/3

Date
23/3

R. Jetty
Post Ref Debit
Credit
SJ
1254

Balance

1254

Dynamics Ltd
Post Ref Debit
Credit
Balance
SJ
1089

1089

Post Ref
SJ

Dockey Ltd
Debit
Credit
858

Balance

858

21

Accounts Receivable
Subsidiary ledger
G Peck
Date
28/3

Post Ref Debit


Credit Balance
SJ
660

660

22

Sales Journal
Date Inv.
No.

Account

11/3

R. Jetty

1 140

114

1254

990

99

1089

23/3 230

Dynamics
Ltd
Dockey Ltd

780

78

858

28/3 231

G. Peck

600

60

660

$3 510

351

3861

(400) (221)

(104)

228

14/3 229

Terms

Post
Ref.

Sales

GST
Coll

Accounts
Rec

23

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AN INTRODUCTION TO
MYOB

25

Use of the General


Journal
When using special journals, a
general journal is still required
for recording some types of
transactions
These include:
Adjusting entries
Closing entries
Reversing entries
Correcting entries
Infrequent transactions (that can not
be recorded in any of the special

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Which journal would


we use?
1. Issue of Shares for
cash
2. Cash purchase of
Inventories
3. Purchase of
Inventories on
credit
4. Sale of inventory
on credit
5. Sale of marketable
securites for cash

6. Receipt of
payment from
customers account
7. Withdrawal of
cash by owner
8. Receipt of credit
note from supplier
for defective
goods
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