Bookkeeping Exam

Special Journal

    journals used by businesses

    numerous transactions

    similar types of transactions

    

Transaction:

    Sales Transaction            Sales Journal

    Purchase Transaction        Purchase Journal

    Receipt of Cash                Cash Receipt Journal

    Payment of Cash            Cash Payment Journal/Disbursement Journal

    

Advantages

    Less space

    Less time to journalize

    Less time to post

    Division of Work

    Details Minimized

    Computerization is feasible

    

Sales Journal

    record sales of merchandise

    sales book

    source document: sales invoice

    

Cash Receipts Journal

    record cash receipts

    on account; cash sales

    source document: official receipt

    examples: collection of charge, cash sales, miscellaneous

    

Purchase Journal

    record all purchases of merchandise ON ACCOUNT

    pre-numbered purchase order

    

Cash Payment Journal

    record all cash disbursements from all types of transactions

    source documents: cash voucher and check

    examples: payment of expenses, cash purchases, payments to creditor, withdrawals

 

Sales Journal

Date        SI #        Accounts Debited        PR        Accts Receivable        Sales

 

Cash Receipts Journal

Date        OR #        Accounts Credited        PR        Sundry Amount        Accounts Receivable        Cash Sales        Sales Discount        Cash

 

Purchase Journal

Date        PO #        Accounts Credited        PR        Purchases                    Accts Payable

 

Cash Receipts Journal

Date        Check #        Accounts Debited        PR        Sundry Amount        Accounts Payable        Cash Purchase        Purchase Discount        Cash

 

 

Subsidiary Ledger

    large number of customers

    accounts with similar nature

        Accounts Receivable Ledger - customer accounts

        Accounts Payable Ledger - creditor accounts

    

General Ledger

    balance sheet

    income statement

    

Controlling Account

    summarizes subsidiary ledger

    maintained in general ledger

 

    

Income Statement

    service business: revenue and expense sections

    merchandising: revenue, cost of good sold, expense sections

    

        Gross Sales - total contract price of all merchandise sold

        Sales Returns and Allowances - merchandise sold but returned

        Sales Discounts - discount

        Net Sales - Total Sales - (sales returns & allowances + sales discount)

        Cost of Good Sold - actual cost of merchandise

        Gross Profit on Sales - net sales - CGS

        Operating Expenses - selling & general

        Selling - direct or indirect with selling

        General - general operation

        Net Profit from Operations - Gross Profit - operating expenses

        Other Income/Expenses - other sources

        Net Income - Final Figure