subsidiary ledger
group of accounts with a common characteristic
customers' subsidiary ledger
accounts receivable subsidiary ledger
creditors' subsidiary ledger
accounts payable subsidiary ledger
control account
the general ledger account that summarizes subsidiary ledger data
List 4 advantages of a subsidiary ledger
1. they show in a sigle account transactins affecting one customer or creditor. 2. they free the general ledger of excessive details. 3. they help locate errors in individual accounts. 4. they make possible a division of labor.
special journals
used in addition to the general journal to record similar types of transcations. Also reduces the time needed to complete the posting process. : ex:sales, cash receipts, purchases, cash payments.
considering special journals, where are correcting, adjusting and closing entries recorded?
general journal
sales journal
records sales of merchandise on account. Do not record cash sales here!Do not record credit sales of other assets here (merch only).
how often do companies post to the sales journal
daily
how often do comapnies post to the general ledger?
monthly
what does a check mark in the reference column of a special journal mean?
that the daily posting to the subsidiary account has been made.
cash receipts journal
record all receipts of cash
When is an account title entered in the 'Account Credited' column?
1. enter a subsidiary ledger account for accounts receivable transactions. 2. enter a general ledger account for transactions not shown in a special column. 3. otherwise no account is entered in this column
List three types of columns in the cash receipts journal
1. Debit.
2. Credit.
3. Debit and Credit combined.
List the two debit columns used on the cash receipts journal
1. Cash.
2. Sales Discounts.
List the 3 credit columns used on the cash receipts journal
1. Accounts receiable.
2. Sales Revenue.
3. Other Accounts.
List the 1 combined credit/debit column on the cash receipts journal
Cost of Goods Sold and Inventory
