Section 1The Sales Journal What You’ll Learn To identify the special journals and how they are...

Section 1 The Sales Journal

Section 1 The Sales JournalWhat You’ll Learn

To identify the special journals and how they are used.

How to record sales of merchandise on account in a sales journal.

How to post from the sales journal to the accounts receivable subsidiary ledger accounts.

How to foot, prove, total, and rule the sales journal.

How to post column totals from the sales journal to the general ledger.

What You’ll Learn To identify the special journals and

how they are used. How to record sales of merchandise on

account in a sales journal. How to post from the sales journal to

the accounts receivable subsidiary ledger accounts.

How to foot, prove, total, and rule the sales journal.

How to post column totals from the sales journal to the general ledger.

Why It’s Important

The use of the sales journal

provides a systematic method of

keeping track of sales on account.


The use of the sales journal

provides a systematic method of

keeping track of sales on account.

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Key Terms

special journals

sales journal

footing

Key Terms

special journals

sales journal

footing


Special Journals

Special journals have amount columns used to record debits and credits to specific general ledger accounts.

Special Journals

Special journals have amount columns used to record debits and credits to specific general ledger accounts.

Sales Journal sales of merchandise on account

Sales Journal sales of merchandise on account

Cash Receipts Journal receipt of cashCash Receipts Journal receipt of cash

Purchases Journal purchase of any asset on account

Purchases Journal purchase of any asset on account

Cash Payments Journal payment of cash, including payments by check

Cash Payments Journal payment of cash, including payments by check

Journal TransactionJournal Transaction

The Sales JournalThe sales journal is a special journal

used to record sales of merchandise on account.

The Sales JournalThe sales journal is a special journal

used to record sales of merchandise on account.


Record the amount of the merchandise sold on account

Record the amount of the merchandise sold on account

Record the amount of sales tax onthe sale

Record the amount of sales tax onthe sale

Record the total amount to be received from the customer on account

Record the total amount to be received from the customer on account

Recording Sales of Merchandise on AccountRecording Sales of Merchandise on Account


Business Transaction

JOURNAL ENTRY

On December 1, On Your Mark sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50.

Posting a Sales Journal Entry to the Accounts Receivable Subsidiary Ledger

To keep the balances of the customer accounts current, sales journal transactions are posted daily to the accounts receivable subsidiary ledger.

Posting a Sales Journal Entry to the Accounts Receivable Subsidiary Ledger

To keep the balances of the customer accounts current, sales journal transactions are posted daily to the accounts receivable subsidiary ledger.


Footing, Totaling, Proving, and Ruling the Sales JournalFooting, Totaling, Proving, and Ruling the Sales Journal


Posting the Total of the Sales Credit Column

Next, transfer the amount in the Sales column to the general ledger.

Posting the Total of the Sales Credit Column

Next, transfer the amount in the Sales column to the general ledger.


Posting the Total of the Sales Tax Payable Credit Column

Next, transfer the amount in the Sales Tax Payable column to the general ledger.

Posting the Total of the Sales Tax Payable Credit Column

Next, transfer the amount in the Sales Tax Payable column to the general ledger.


Posting the Total of the Accounts Receivable Debit Column

The last amount to be transferred to the general ledger is the Accounts Receivable Debit column.

Posting the Total of the Accounts Receivable Debit Column

The last amount to be transferred to the general ledger is the Accounts Receivable Debit column.


Proving the Sales Journal at the End of a Page

If a business has many transactions in one month, and it is impossible to fit them onto one journal page, the journal page must be totaled and ruled before a new page is started.

Proving the Sales Journal at the End of a Page

If a business has many transactions in one month, and it is impossible to fit them onto one journal page, the journal page must be totaled and ruled before a new page is started.


Section 2 The Cash Receipts Journal

Section 2 The Cash Receipts Journal

What You’ll Learn How to record transactions in the cash

receipts journal. How to post from the cash receipts journal to

accounts receivable subsidiary ledger accounts.

How to post amounts in the General Credit column of the cash receipts journal to general ledger accounts.

How to post column totals from the cash receipts journal to the general ledger.

How to prepare a schedule of accounts receivable.

What You’ll Learn How to record transactions in the cash

receipts journal. How to post from the cash receipts journal to

accounts receivable subsidiary ledger accounts.

How to post amounts in the General Credit column of the cash receipts journal to general ledger accounts.

How to post column totals from the cash receipts journal to the general ledger.

How to prepare a schedule of accounts receivable.


Use of the cash receipts journal

will save time and reduce errors.


Use of the cash receipts journal

will save time and reduce errors.

Section 2 The Cash Receipts Journal (cont'd.)Section 2 The Cash Receipts Journal (cont'd.)

Key Terms

cash receipts journal

schedule of accounts receivable

Key Terms

cash receipts journal

schedule of accounts receivable

The Cash Receipts Journal

A special journal used to record all cash receipt transactions.

The Cash Receipts Journal

A special journal used to record all cash receipt transactions.


Recording Cash from Charge CustomersRecording Cash from Charge Customers


Business Transaction

On December 5, OnYour Mark received $212from Casey Klein toapply on account,Receipt 301.

JOURNAL ENTRY


Business Transaction On December 12, On Your Mark received $1,470from South Branch High School Athletics in pay-ment of Sales Slip 51 for $1,500 less the discount of $30, Receipt 302.

JOURNAL ENTRY

Recording Cash Received on Account, Less a Cash DiscountRecording Cash Received on Account, Less a Cash Discount


Business Transaction On December 15, On YourMark records the cash salesfor the first two weeks ofDecember, $3,000, and $180in related sales taxes,Tape 55.

JOURNAL ENTRY

Recording Cash SalesRecording Cash Sales

Posting to the Accounts Receivable Subsidiary Ledger

Daily postings are made from the Accounts Receivable Credit column to the accounts receivable subsidiary ledger.

Posting to the Accounts Receivable Subsidiary Ledger

Daily postings are made from the Accounts Receivable Credit column to the accounts receivable subsidiary ledger.


Posting the General Credit ColumnDaily postings are made from the

General Credit column of the cash receipts journal to the appropriate accounts in the general ledger.

Posting the General Credit ColumnDaily postings are made from the

General Credit column of the cash receipts journal to the appropriate accounts in the general ledger.


Footing, Totaling, Proving, and Ruling the Cash Receipts Journal

To complete the cash receipts journal,

follow these steps:

Footing, Totaling, Proving, and Ruling the Cash Receipts Journal

To complete the cash receipts journal,

follow these steps:

1. Draw a single rule across the six amount columns, below the last transaction. Done to show addition.

2. Foot the columns.

3. Test for the equality of debits and credits.

1. Draw a single rule across the six amount columns, below the last transaction. Done to show addition.

2. Foot the columns.

3. Test for the equality of debits and credits.


Footing, Totaling, Proving, and Ruling the Cash Receipts Journal (cont'd.)

Footing, Totaling, Proving, and Ruling the Cash Receipts Journal (cont'd.)

4. In the Date column, on the line below the single rule, enter the date the journal is being totaled.

5. On the same line in the Account Name column, enter the word “Totals.”

6. Enter the columns totals, in ink, just below the footings.

7. Double-rule the amount columns.

4. In the Date column, on the line below the single rule, enter the date the journal is being totaled.

5. On the same line in the Account Name column, enter the word “Totals.”

6. Enter the columns totals, in ink, just below the footings.

7. Double-rule the amount columns.


Posting Column Totals to the General LedgerPosting Column Totals to the General Ledger

There are six amount columns in the cash receipts journal used by On Your Mark. Only five of the column totals, however, are posted to the general ledger.

The total of the General Credit column is not posted. The entries in this column have already been posted, individually, to the general ledger accounts.

There are six amount columns in the cash receipts journal used by On Your Mark. Only five of the column totals, however, are posted to the general ledger.

The total of the General Credit column is not posted. The entries in this column have already been posted, individually, to the general ledger accounts.


Posting Column Totals to the General Ledger (cont'd.)

Posting Column Totals to the General Ledger (cont'd.)

The total in each of the other five

amount columns is posted to the

general ledger account named in

the column heading.

The total in each of the other five

amount columns is posted to the

general ledger account named in

the column heading.


Proving the Accounts Receivable Subsidiary LedgerProving the Accounts Receivable Subsidiary Ledger


A schedule of accounts receivable

is a report listing each charge

customer, the balance in the

customer’s account, and the total

amount due from all customers.

A schedule of accounts receivable

is a report listing each charge

customer, the balance in the

customer’s account, and the total

amount due from all customers.

Proving the Accounts Receivable Subsidiary Ledger (cont'd.)

Proving the Accounts Receivable Subsidiary Ledger (cont'd.)


Section 1The Sales Journal What You’ll Learn To identify the special journals and how they are...

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