Post on 13-Jan-2016
Special Journals: Purchases and Cash Payments
Chapter 17
Using the Purchases Journal• Purchases journal is for recording purchases on
account. (Not just merchandise but anything on account)
• Enter date the invoice was received not the date it was prepared
Pg 482
Purchases ofMerchandiseOn account
Purchases of Non MerchandiseOn account
Pgs 483-484
Posting Merchandise
Posting Non-Merchandise
Pgs 485-486
Proving and RulingSpecial Amount Columns
Posting Column Totals
Pgs 486-487
Using the Cash Payments Journal
• The cash payments journal is used to record all transactions in which cash is paid out or decreased.
Pg 489
Cash Payment for Prepaid Insurance
Cash Payment for Purchases
Cash Payment on Account Payable
Pgs 490-491
Cash Payment for TransportationIn
Cash Paid for Salaries
Cash Payment ofMiscellaneous Expenses such as Bank service charges
Pgs 492-493
Cash Payment of Bank Card Fees
Pg 494
Posting Payment to an AccountsPayable
Posting Transactions From the General Column
Accounts payable payments and payments to accounts journalized in the general column are posted individually on a daily basis.
Pgs 495, 497
Proving and Ruling the Cash Payments Journal
Pg 498
Posting Column Totals of the Cash Payments Journal
Prove and rule the journal Once debits and credits equal
General Column TotalsDon’t get posted.
Totals are posted onceA month
Pg 499
Schedule of Accounts Payable• Used to make sure that the amount in the
controlling account, Accounts Payable, it the same as the account totals in the Subsidiary Ledger.
Pg 500
Proving Cash
• Proving Cash is the process of verifying that cash recorded in the accounting records (cash ledger) agrees with the amount in the checkbook (check stub).
Pg 501