The Accounting Cycle for a Merchandising Corporation!!!

Chapter 16:

Special Journal

s: Sales & Cash Receipt

s

ESSENTIAL OUTCOMES

16. Understand two special journal: Sales Journal & Cash Receipts Journal by being able to:

a. Identify special journals & how they are used.b. Record sales of merchandise on account in the

sales journalc. Record receipt of all cash into Cash Receipts

Journald. Post from the Sales Journal to the General

Journal & A/R Subsidiary Ledgere. Post from the Cash Receipts Journal to General

Journal & A/R Subsidiary Ledgerf. Foot, prove, total & rule sales journal & cash

receipts journalg. Define the accounting terms used in this

chapter

SPECIAL JOURNAL Have amounts columns used to record

debits and credits to specific general ledger accounts

Most transactions recorded on one line Simplify journalizing & posting process

FOUR SPECIAL JOURNALS

1. Sales journal2. Cash receipts

journal3. Purchases

journal4. Cash

payments journal

Sale of merchandise on account

Receipt of all cash Purchase of any

asset account Payment of all

cash

The Sales Journal

THE SALES JOURNAL

Special journal used to record sales of merchandise on account

Sales journal has:a) Space for page numberb) Columns for date & posting referencec) Separate column to record the sales

slip numberd) Column to record name of charge

customere) Three special amount columns:

1. Sales Credit column2. Sales Tax Payable Credit column3. A/R Debit Column

THE SALES JOURNAL

SALES JOURNAL

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

SALES JOURNAL

Posting transactions from the Sales Journal to the A/R Subsidiary Ledger.

FOOTING, TOTALING, PROVING & RULING THE SALES JOURNAL

POSTING TOTALS IN SALES CREDIT COLUMN

POSTING TOTAL OF SALES TAX PAYABLE COLUMN

POSTING THE TOTAL OF THE A/R DEBIT COLUMN

PROVING SALES JOURNAL AT END OF PAGE

The

Cash Receipts

Journal

CASH RECEIPTS JOURNAL

THE CASH RECEIPTS JOURNAL

Special journal used to record receipt of all cash received or (cash receipt)—debit to Cash in Bank

Cash Receipts Journal has:a) Space for page numberb) Columns for date & posting referencec) Separate column to record the sales slip

numberd) Column to record name of charge customere) Six special amount columns:

1. General Credit column2. Sales Credit column3. Sales Tax Payable Credit column4. A/R Credit column5. Sales Discounts Debit column6. Cash in Bank Debit column

THE CASH RECEIPTS JOURNAL COLUMNS

General Credit

Sales Credit

Sales Tax Payable Credit

A/R Credit

Sales Discounts Debit

Cash in Bank Debit

Record credit to accounts where there is no special column

Merchandise purchased by customers using cash or bank cards

Sales tax collected Record payments from

charge customers Record amount o cash

discounts taken by charging customers

Record amount of cash actually received in transaction

CASH RECEIPT JOURNAL

On December 5, Casey Klein pays $212.00 on account, R301.

RECORDING CASH FROM CUSTOMERS ON ACCOUNT WITH DISCOUNT

Received $1,470 from South Branch High School Athletics in payment of Sales Slip 51 for $1500 less discount of $30, Receipt 302.

RECORDING CASH SALES

RECORDING BANKCARD SALES

RECEIVED $30 FROM MANDY HARRIS FOR PURCHASE OF A CALCULATOR THAT THE BUSINESS WAS NO LONGER USING, RECEIPT 303.

POSTING INDIVIDUAL AMOUNTS FROM CR JOURNAL TO THE SUBSIDIARY LEDGER.

POSTING GENERAL CREDIT COLUMN

FOOTING, TOTAL, PROVING & RULING CR JOURNAL

POSTING COLUMN

TOTALS TO GENERAL LEDGER

PROVING ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

THAT’S ALL FOLKS!!!

Now, on to some class activities on our

topic!!!