logging in or signing up Subsidiary Ledger and Special Journal ankush85 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 5171 Category: Education License: All Rights Reserved Like it (10) Dislike it (0) Added: July 21, 2009 This Presentation is Public Favorites: 5 Presentation Description No description available. Comments Posting comment... By: butho (4 month(s) ago) please allow me to download this presentation.....please...thanks Saving..... Post Reply Close Saving..... Edit Comment Close By: chelotiansing (4 month(s) ago) please allow me to download this template.. i really really need it.. Saving..... Post Reply Close Saving..... 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General Overview of Subsidiary Ledger and Special Journals : General Overview of Subsidiary Ledger and Special Journals With increases in the number and complexity of business activities, the demands to facilitate and simplify the recording process through the use of subsidiary ledgers and special journals increase. By having special journal, similar transactions can be grouped into its specific journals, thus, reduces the recording costs and facilitates the information searching process. Subsidiary ledgers provide further information on each individual balances for an account in the general ledger (accounts receivable and accounts payable). Subsidiary Ledgers : Subsidiary Ledgers Subsidiary ledger is a list of individual accounts with a common characteristic. Contains detailed information on specific accounts in the general ledger. Two of the most important subsidiary ledgers: (a) Accounts receivable ledger - stores transaction data of individual customers - also called as Accounts Receivable Subsidiary Ledger (b) Accounts payable ledger - stores transaction data of individual suppliers. - also called as Accounts Payable Subsidiary Ledger Advantages of Subsidiary Ledgers : Advantages of Subsidiary Ledgers remove excessive details from general ledger provide up-to-date information on customer or other specific account balances aid in error identification for individual accounts help with division of labor (recordkeeping tasks) Control Account : Control Account Control account is an account in the general ledger that summarizes subsidiary ledgers. The total of the subsidiary ledgers should total the balance in the related control account. Subsidiary Ledgers : Subsidiary Ledgers Subsidiary ledgers are a listing of individual accounts with common characteristics. Slide 8: Relationship of General Ledgers and Subsidiary Accounts General Ledger Subsidiary Ledgers Cash Owner’s Capital Accounts Receivable Accounts Payable Customer A Customer B Customer C Creditor P Creditor Q Creditor R Accounts receivable controls a Accounts payable controls a subsidiary ledger of many different subsidiary ledger of many different customers. creditors. Accounts Receivable Subsidiary Ledger : Accounts Receivable Subsidiary Ledger After all items are posted, the balance in the accounts receivable controlling account is equal to the sum of the balances in the subsidiary ledger. Accounts Payable Subsidiary Ledger : Accounts Payable Subsidiary Ledger After all items are posted, the balance in the accounts payable controlling account is equal to the sum of the balances in the subsidiary ledger. Slide 11: Now, let’s look at how we use special journals in accounting. Special Journals : Special Journals Special journal is used to record and post transactions of similar type. Special journals are efficient tools in helping journalize and post transactions. Special journals allow an efficient division of labor. Special Journals in Accounting : Special Journals in Accounting Sales Journal : Sales Journal Sales journal is used to record sales of inventory on credit. Sales of inventory for cash are not recorded in a sales journal but in a cash receipts journal. Sales of non-inventory assets on credit are recorded in the general journal. Each transaction in the sales journal includes a debit to accounts receivable and a credit to sales. Sales Journal : Sales Journal On 1 January, Jim Carson purchased $600 of merchandise on account from Barry’s Bikes. Record the entry in the Sales Journal. (Assume the use of a perpetual inventory system.) Sales Journal : Each transaction yields a debit to Accounts Receivable and a credit to Sales. We need only two columns for this transaction. This column total is posted monthly. Sales Journal Sales Journal : Daily, each transaction is posted to the appropriate accounts receivable subsidiary account. Sales Journal Sales Journal : A ü in the posting reference column indicates the transaction was posted to the subsidiary account. Sales Journal Sales Journal : Here is the Sales Journal after recording some additional sales. Sales Journal Sales Journal : Sales Journal Post the total to the General Ledger accounts. Sales Journal : Sales Journal Sales Journal : Sales Journal Proving the Ledgers : Proving the Ledgers The Accounts Receivable controlling account and the subsidiary ledger are in balance. Sales Returns and Allowances : Sales Returns and Allowances If a company has few sales returns, they may be recorded in the General Journal. A company with many sales returns, may use a Sales Returns and Allowances Journal. Sales Returns and Allowances : Column totals are posted monthly. Each transaction is posted daily to the appropriate Accounts Receivable subsidiary account. Sales Returns and Allowances Cash Receipts Journal : Cash Receipts Journal Cash receipts journal is used to record all receipts of cash. Each transaction in the cash receipts journal involves a debit to Cash. Credit accounts will vary. Cash Receipts Journal : Cash Receipts Journal Categories of Cash Receipts Cash from cash sales Cash from credit customers Cash from other sources Cash Receipts Journal : Cash Receipts Journal Purchases Journal : Purchases Journal The Purchases Journal is used to record all purchases on credit. Purchases Journal : Purchases Journal Cash Disbursements Journal : Cash Disbursements Journal The Cash Disbursements Journal is used to record all payments of cash. Also called as Cash Payments Journal Cash Disbursements Journal : Cash Disbursements Journal General Journal Transactions : General Journal Transactions Adjusting Entries Closing Entries Reversing Entries Other transactions not recorded in Special Journals Slide 34: The End You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Subsidiary Ledger and Special Journal ankush85 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 5171 Category: Education License: All Rights Reserved Like it (10) Dislike it (0) Added: July 21, 2009 This Presentation is Public Favorites: 5 Presentation Description No description available. Comments Posting comment... By: butho (4 month(s) ago) please allow me to download this presentation.....please...thanks Saving..... Post Reply Close Saving..... Edit Comment Close By: chelotiansing (4 month(s) ago) please allow me to download this template.. i really really need it.. Saving..... Post Reply Close Saving..... Edit Comment Close By: Arumdhaty (11 month(s) ago) Hi, please let me download this presentation Thanks Saving..... Post Reply Close Saving..... Edit Comment Close By: 641019 (22 month(s) ago) hi will allow me to download the presentation please Saving..... Post Reply Close Saving..... Edit Comment Close By: marshabhags (28 month(s) ago) hi my name is Marsha and I'm a student teacher, I find this presentation very informative and I would like to download it.. Would you aloow me to obtain that priveledge? Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide 1: Subsidiary Ledger and Special Journal Learning Objectives : Learning Objectives Describe general overview of subsidiary ledger and special journals. Explain the goals and uses of special journal. Describe the use of controlling accounts and subsidiary ledgers. Journalize and post transactions using special journals. Prepare and prove the accuracy of subsidiary ledgers. General Overview of Subsidiary Ledger and Special Journals : General Overview of Subsidiary Ledger and Special Journals With increases in the number and complexity of business activities, the demands to facilitate and simplify the recording process through the use of subsidiary ledgers and special journals increase. By having special journal, similar transactions can be grouped into its specific journals, thus, reduces the recording costs and facilitates the information searching process. Subsidiary ledgers provide further information on each individual balances for an account in the general ledger (accounts receivable and accounts payable). Subsidiary Ledgers : Subsidiary Ledgers Subsidiary ledger is a list of individual accounts with a common characteristic. Contains detailed information on specific accounts in the general ledger. Two of the most important subsidiary ledgers: (a) Accounts receivable ledger - stores transaction data of individual customers - also called as Accounts Receivable Subsidiary Ledger (b) Accounts payable ledger - stores transaction data of individual suppliers. - also called as Accounts Payable Subsidiary Ledger Advantages of Subsidiary Ledgers : Advantages of Subsidiary Ledgers remove excessive details from general ledger provide up-to-date information on customer or other specific account balances aid in error identification for individual accounts help with division of labor (recordkeeping tasks) Control Account : Control Account Control account is an account in the general ledger that summarizes subsidiary ledgers. The total of the subsidiary ledgers should total the balance in the related control account. Subsidiary Ledgers : Subsidiary Ledgers Subsidiary ledgers are a listing of individual accounts with common characteristics. Slide 8: Relationship of General Ledgers and Subsidiary Accounts General Ledger Subsidiary Ledgers Cash Owner’s Capital Accounts Receivable Accounts Payable Customer A Customer B Customer C Creditor P Creditor Q Creditor R Accounts receivable controls a Accounts payable controls a subsidiary ledger of many different subsidiary ledger of many different customers. creditors. Accounts Receivable Subsidiary Ledger : Accounts Receivable Subsidiary Ledger After all items are posted, the balance in the accounts receivable controlling account is equal to the sum of the balances in the subsidiary ledger. Accounts Payable Subsidiary Ledger : Accounts Payable Subsidiary Ledger After all items are posted, the balance in the accounts payable controlling account is equal to the sum of the balances in the subsidiary ledger. Slide 11: Now, let’s look at how we use special journals in accounting. Special Journals : Special Journals Special journal is used to record and post transactions of similar type. Special journals are efficient tools in helping journalize and post transactions. Special journals allow an efficient division of labor. Special Journals in Accounting : Special Journals in Accounting Sales Journal : Sales Journal Sales journal is used to record sales of inventory on credit. Sales of inventory for cash are not recorded in a sales journal but in a cash receipts journal. Sales of non-inventory assets on credit are recorded in the general journal. Each transaction in the sales journal includes a debit to accounts receivable and a credit to sales. Sales Journal : Sales Journal On 1 January, Jim Carson purchased $600 of merchandise on account from Barry’s Bikes. Record the entry in the Sales Journal. (Assume the use of a perpetual inventory system.) Sales Journal : Each transaction yields a debit to Accounts Receivable and a credit to Sales. We need only two columns for this transaction. This column total is posted monthly. Sales Journal Sales Journal : Daily, each transaction is posted to the appropriate accounts receivable subsidiary account. Sales Journal Sales Journal : A ü in the posting reference column indicates the transaction was posted to the subsidiary account. Sales Journal Sales Journal : Here is the Sales Journal after recording some additional sales. Sales Journal Sales Journal : Sales Journal Post the total to the General Ledger accounts. Sales Journal : Sales Journal Sales Journal : Sales Journal Proving the Ledgers : Proving the Ledgers The Accounts Receivable controlling account and the subsidiary ledger are in balance. Sales Returns and Allowances : Sales Returns and Allowances If a company has few sales returns, they may be recorded in the General Journal. A company with many sales returns, may use a Sales Returns and Allowances Journal. Sales Returns and Allowances : Column totals are posted monthly. Each transaction is posted daily to the appropriate Accounts Receivable subsidiary account. Sales Returns and Allowances Cash Receipts Journal : Cash Receipts Journal Cash receipts journal is used to record all receipts of cash. Each transaction in the cash receipts journal involves a debit to Cash. Credit accounts will vary. Cash Receipts Journal : Cash Receipts Journal Categories of Cash Receipts Cash from cash sales Cash from credit customers Cash from other sources Cash Receipts Journal : Cash Receipts Journal Purchases Journal : Purchases Journal The Purchases Journal is used to record all purchases on credit. Purchases Journal : Purchases Journal Cash Disbursements Journal : Cash Disbursements Journal The Cash Disbursements Journal is used to record all payments of cash. Also called as Cash Payments Journal Cash Disbursements Journal : Cash Disbursements Journal General Journal Transactions : General Journal Transactions Adjusting Entries Closing Entries Reversing Entries Other transactions not recorded in Special Journals Slide 34: The End