General Ledger Accounting Procedures Source Document Financial Statements, Reports Adjusted Trial Balance Adjusting Entries Trial Balance Ledger Journal

General Ledger Accounting Procedures

SourceDocument

FinancialStatements,

Reports

AdjustedTrial

Balance AdjustingEntries

TrialBalance

Ledger

JournalClosingEntries

Source Documents

• Examples: • sales order, Bill of Lading (shipping notice),

sales invoice• Purchase requisition, purchase order, receiving

report, vendor invoice, check• Contract, time card, check

Source Document Journal

• Journal: Book of original entry• Transaction analysis (debit, credit what?)

• General journal vs. Special journals• Efficiency

• Typical Special Journals:• Sales• Cash Receipts• Cash Payments• Purchases• Payroll

General Journal

WAREN SPORTS SUPPLY

GENERAL JOURNAL

December, 2005

ACCT.

DATE NO. EXPLANATION POST DEBIT CREDIT

1

Dec. 22 10300 Allowance for doubtful accounts P 2,900.00

10200 Accounts receivable P 2,900.00

To write off uncollectible Stevenson

College account RK

2

Dec. 26 10210 Accounts receivable from employees P 300.00

10900 Accumulated depreciation P 1,025.00

10800 Fixed assets P 1,025.00

30900 Gain/loss on sale of fixed assets P 300.00

To record sale of bookshelves to employee SAMPLE

SALES JOURNAL DECEMBER

Inv. or Subs. Subs. Debit Credit

Cr. Memo Acct. Post Acct. Rec. Sales Returns Sales

Date Customer Number No. G/L 10200 G/L 30200 G/L 30100

Dec. 2 Rosemont University 727 406 P 4,174.00 4,174.00

Dec. 7 Clayborn University 728 407 P 7,252.00 7,252.00

Dec. 9 E. Wisconsin University 729 410 P 21,872.00 21,872.00

Dec. 13 Branch College 730 408 P 1,656.00 1,656.00

Dec. 19 Univ. of S. Iowa 731 409 P 17,931.00 17,931.00

Dec. 23 E. Wisconsin University CM 42 410 P (3,480.00) 3,480.00


-______________ - -

Monthly totals 60,451.60 3,480.00 63,931.60

= = =

P P P

SAMPLE

6

PURCHASES JOURNAL DECEMBER

Vendor Debit Credit

Invoice Purchases Other G/L A/P - G/L 20100 Purch. Ret.

Date Vendor No. G/L 30500 Acc# Amount Post Subs. A/C# Amount Post G/L 30600

Dec. 5 Velocity Sporting Goods 33965 36,115.00 252 36,115.00 P

Dec. 12 Chicago Office Supply 2344 10800 7,367.00 253 7,367.00 P


Dec. 26 Chicago Office Supply 2378 40300 559.15 253 559.15 P


----------- ----------- -----------

Monthly totals 54,145.00 12,484.15 66,629.15

====== ====== ======

P P

SAMPLE

Source

Document

________________________

Sales journal: Credit Sales & credit Returns

Cash Receipts journal: any cash receipt (Sales, AR, Other)

Purchase journal: Credit purchases or credit Purchase Returns of inventory, supplies, PPE

Cash Payments journal: any Cash Payment except for Payroll

Payroll journal: any paycheck

General journal

POST Source Document to ONE AND

ONLY ONE Journal!!!

Source Document Journals General Ledger

• Ledger: Separate record for each account• Cash, Accounts Receivable, …Sales, Cost of

Goods Sold• Balance Sheet/ Income Statement Order

• Posting: transferring data from journal to ledger• Total journal at end of month and post total to Ledger

account

Debit10100 - CASH Journal Debit Credit BalanceOct. 1 Balance Forward 44,467.35Oct. 31 CR 110,395.64 Oct. 31 CD 98,364.18 Oct. 31Net Wages and Salary PR 10,320.87 Oct. 31Bank Service Charge G 25.00 46,152.94Nov. 30 CR 82,113.56 Nov. 30 CD 44,110.43 Nov. 30Net Wages and Salary PR 10,801.39 Nov. 30Bank Service Charge G 21.00 73,333.68Dec. 31 CR 132,098.03 Dec. 31 CD 103,833.83 Dec. 31Net Wages and Salary PR 11,712.27 Dec. 31Bank Service Charge G 27.50 89,858.11

Debit Ctrl

10200 - ACCOUNTS RECEIVABLE Journal Debit Credit Balance Init

Oct. 1Balance Forward 49,451.00 NF

Oct. 31 S 86,714.00

Oct. 31 CR 74,369.00 61,796.00 NF

Nov. 30 S 37,263.00

Nov. 30 CR 75,054.00 24,005.00 NF

Dec. 22 G 2,900.00

Dec. 31 S 60,451.60

Dec. 31 CR 34,128.60 47,428.00 NF

Sample Ledger Cards SAMPLENote that totals are posted from journals

Posting: Journal to Ledger SALES

JOURNAL DECEMBER











-______________ - -

Monthly totals 60,451.60 3,480.00 63,931.60

= = =

P P P

30100 - SALES Journal Debit Credit Balance

Oct. 1 Balance Forward 1,326,865.00

Oct. 31Credit Sales S 86,714.00

Oct. 31Cash Sales CR 36,607.00 1,450,186.00

Nov. 30Credit Sales S 60,277.00

Nov. 30Cash Sales CR 7,767.00 1,518,230.00

Dec. 31Credit Sales S 63,931.60

Dec. 31Cash Sales CR 21,437.00 1,603,598.60

Dec. 31 G 1,603,598.60 0.00

General Ledger

SAMPLE

At EOM, Foot and cross-foot

journals, post totals to ledgers


JOURNAL DECEMBER











-______________ - -

Monthly totals 60,451.60 3,480.00 63,931.60

= = =

P P P

General LedgerDebit Ctrl



Oct. 31 S 86,714.00

Oct. 31 CR 74,369.00 61,796.00 NF

Nov. 30 S 37,263.00

Nov. 30 CR 75,054.00 24,005.00 NF

Dec. 22 G 2,900.00

Dec. 31 S 60,451.60

Dec. 31 CR 34,128.60 47,428.00 NF

SAMPLE

Post to GL

account 30200

12

WAREN SPORTS SUPPLY GENERAL JOURNAL

December, 2005

ACCT. DATE NO. EXPLANATION POST DEBIT CREDIT

1 Dec. 22 10300 Allowance for doubtful accounts P 2,900.00 10200 Accounts receivable P 2,900.00 To write off uncollectible Stevenson College account RK 2 Dec. 26 10210 Accounts receivable from employees P 300.00 10900 Accumulated depreciation P 1,025.00 10800 Fixed assets P 1,025.00 30900 Gain/loss on sale of fixed assets P 300.00 To record sale of bookshelves to employee

10300 - ALLOWANCE FOR Credit DOUBTFUL ACCOUNTS Journal Debit Credit BalanceOct. 1 Balance Forward 1,750.81Dec. 22 G 2,900.00

Debit Ctrl



Oct. 31 S 86,714.00

Oct. 31 CR 74,369.00 61,796.00 NF

Nov. 30 S 37,263.00

Nov. 30 CR 75,054.00 24,005.00 NF

Dec. 22 G 2,900.00

Dec. 31 S 60,451.60

Dec. 31 CR 34,128.60 47,428.00 NF

SAMPLE

Post from General Journal to General Ledger

Note that line entries are posted from the GENERAL JOURNAL

General Ledger : Subsidiary and Control

• Control Accounts =GL ACCOUNT• Aggregate• Column total posting from journals

• Subsidiary Ledger• Detail• AR, AP, Employee, Fixed Assets• Line item posting from journals• Sum of the subsidiary (all records) = Control

Post Journal Lines to Subsidiary

14












-______________ - -

Monthly totals 60,451.60 3,480.00 63,931.60

= = =

P P P406 ROSEMONT UNIVERSITY

121 E. FrontLouisville, Kentucky 40202 CREDIT LIMIT: $125,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Oct. 6 Invoice # 722 29,018.00 29,018.00Oct. 14 Payment # 722 29,018.00 0.00Nov. 7 Invoice # 724 2,460.00 2,460.00Nov. 17 Payment # 724 2,460.00 0.00Dec. 2 Invoice # 727 4,174.00 4,174.00Dec. 9 Payment #727 4,174.00 0.00

407 CLAYBORN UNIVERSITY13210 S. UptonLogansport, Indiana 46947 CREDIT LIMIT: $125,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Dec. 7 Invoice # 728 7,252.00 7,252.00Dec. 15 Payment # 728 7,252.00 0.00Dec. 23 Invoice # 732 11,046.60 11,046.60Dec. 29 Payment # 732 11,046.60 0.00

At the time of the transaction


JOURNAL DECEMBER











-______________ - -

Monthly totals 60,451.60 3,480.00 63,931.60

= = =

P P P

General LedgerDebit Ctrl



Oct. 31 S 86,714.00

Oct. 31 CR 74,369.00 61,796.00 NF

Nov. 30 S 37,263.00

Nov. 30 CR 75,054.00 24,005.00 NF

Dec. 22 G 2,900.00

Dec. 31 S 60,451.60

Dec. 31 CR 34,128.60 47,428.00 NF

SAMPLEAt EOM, Foot and cross-foot

journals, post totals to ledgers

253 CHICAGO OFFICE SUPPLY 1441 E. Michigan Chicago, Illinois 60606

TERMS: Due on receipt of invoice FREIGHT: No Charge

DATE Description Debit Credit BalanceOct. 1 Balance Forward 1,087.83Oct. 7 Check # 1111 1,087.83 0.00Oct. 19 Vendor invoice # 2112 985.80 985.80Nov. 8 Check # 1124 985.80 0.00Nov. 21 Vendor invoice # 2275 558.09 558.09Nov. 23 Check # 1136 558.09 0.00Dec. 12 Vendor invoice # 2344 7,367.00 7,367.00Dec. 12 Check # 1141 7,367.00 0.00Dec. 26 Vendor Invoice # 2378 559.15 559.15Dec. 30 Vendor Invoice # 2423 4,558.00 5,117.15

16PURCHASES JOURNAL DECEMBER

Vendo

r Debit Credit

Invoic

e Purchases Other G/L A/P - G/L

20100 Purch. Ret. Date Vendor No. G/L 30500 Acc# Amount Post Subs. A/C# Amount Post G/L 30600






----------- ----------- -----------

Monthly totals 54,145.00 12,484.15 66,629.15

====== ====== ======

P P

252 VELOCITY SPORTING GOODS 1285 Colgrove Ave. Pierre, SD 57501

TERMS: 2/10, Net 30 FREIGHT : Collect

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Oct. 5 Vendor Invoice # 32407 81,285.00 81,285.00Oct. 14 Check # 1112 81,285.00 0.00Nov. 3 Vendor invoice # 33371 27,380.00 27,380.00Nov. 13 Check # 1125 27,380.00 0.00Dec. 5 Vendor invoice # 33965 36,115.00 36,115.00Dec. 13 Check # 1142 36,115.00 0.00Dec. 22 Vendor Invoice #34719 18,030.00 18,030.00

Subsidiary AP Ledgers

17PURCHASES JOURNAL DECEMBER

Vendo

r Debit Credit

Invoic

e Purchases Other G/L A/P - G/L

20100 Purch. Ret. Date Vendor No. G/L 30500 Acc# Amount Post Subs. A/C# Amount Post G/L 30600






----------- ----------- -----------

Monthly totals 54,145.00 12,484.15 66,629.15

====== ====== ======

P P

Credit Ctrl20100 - ACCOUNTS PAYABLE Journal Debit Credit Balance InitOct. 1Balance Forward 1,087.83 NFOct. 31 P 85,920.80 Oct. 31 CD 82,372.83 4,635.80 NFNov. 30 P 27,938.09 Nov. 30 CD 28,923.89 3,650.00 NFDec. 31 P 66,629.15

General Ledger Trial Balance

• Trial Balance: sum of each account in the ledger• Assures Debits = Credit• Assures Accounts summed correctly• But could have offsetting errors

DEBIT CREDIT10100 Cash 1,018.64 10200 Accounts receivable 73,483.00 10210 Accounts receivable from employees 120.00 10300 Allowance for doubtful accounts 400.00 10400 Inventory 41,325.00 10600 Marketable securities 8,000.00 10800 Fixed assets 127,560.00 10900 Accumulated depreciation 16,087.00 20100 Accounts payable 31,526.50 20300 Federal income taxes withheld 755.21 20400 State unemployment taxes payable 29.18 20500 Federal unemployment taxes payable 8.65 20600 F.I.C.A. taxes payable 1,129.60 26000 Common stock 75,000.00 29000 Retained earnings 79,213.55 30100 Sales 643,019.50 30200 Sales returns and allowances 34,770.00 30300 Sales discounts taken 4,039.33 30500 Purchases 456,456.00 30600 Purchases returns and allowances 14,128.00 30700 Purchases discounts taken 7,413.82 30800 Freight-in 6,803.00 30900 G/L on sale of fixed assets 120.00 40100 Rent expense 17,600.00 40200 Advertising expense 6,798.00 40300 Office supplies expense 4,102.28 40500 Wages and salaries expense 69,902.30 40600 Payroll tax expense 6,152.46 41000 Other operating expense 9,901.00

TOTALS 868,431.01 868,431.01

Trial Balance due

for each SUA

AssignmentSAMPLESAMPLE

ACG 306 Chapter 1

SourceDocument

FinancialStatements

AdjustedTrial

Balance AdjustingEntries

TrialBalance

Ledger

JournalClosingEntries

In a computerized system, what is automated?

SUA Assignments

• “S” Transactions: due for SUA #1• SALES Journal transactions• But may have exceptions

• “CR” Transactions: Due for SUA #2• Cash Receipts Journal transactions• But may have exceptions

• “P” Transactions: DUE for SUA #3• Purchase Journal• Exceptions

21

SUA Assignments

• ‘CD” Transactions: due for SUA #4• Cash Disbursements (Cash Payments) Journal• But may have exceptions

• “PR” Transactions: Due for SUA #5• Payroll Journal• But may have exceptions

• SUA #6 Year end, adjustments, closing, financials

22

Process

• Record transaction on source document

• Copy key data elements from source document to Journal at time of transaction. Copy data elements from journal to Sudsidiary Ledger

• At EOM, total journal columns and crossfoot.

• Copy totals to appropriate General Ledger Account

23

General Ledger Trial Balance

• Trial Balance: sum of each account in the ledger• Debits = Credit• Accounts summed correctly• Could have offsetting errors

• Pull a trial balance every time you post from a journal

SYSTEMS UNDERSTANDING AID (SUA) ASSIGNMENT SCHEDULE

Turn in photocopies of the required journals or schedules for each assignment per the schedu le below. After the graded assignment has been returned please correct the original. Assignment #6 requires that the entire original (as corrected) package be turned in. After the Systems Understanding Aid is completed and graded, the Aid is yours to keep and use for future reference. You should mark up all parts of the materials as you consider appropriate, except for journals, ledgers and documents. These will be handed in for grading and should include only the information stated in the Aid requirements. It is suggested that journals, ledgers, documents and schedules be neatly prepared in pencil to facilitate corrections. Any type of paper can be used for schedules as long as they are neatly prepared and can be easily read. Assig

n. #

REF.

BOOK CHAPTER

INSTRUCTIONS, FLOWCHARTS

AND LEDGERS BOOK

HAND-IN*

#1

1 & 2

3

You are following Option 1 on pages 10 of “Instructions, Ledgers, and Flowcharts” booklet.. Read Introductory information on pages 3-16 and scan the remainder of the booklet. Scan through all documents in the Temporary Documents

File. Go through all transactions on the green Transactions List

(Document No.1 in the document file) and write S, CR, P, CD, or PR beside each transaction as follows:

Sale, sales return, or charge-off (S) Cash Receipt (CR) Purchase of goods or services (P) Cash disbursement, except for payroll (CD) Payroll (PR)

Every transaction must be identified as one of these three types.

Sales Study flowcharts on pages 18-20 of “Instructions, Ledgers, and Flowcharts” booklet. Complete the Seven step process for recording a

transaction on pages 11 and 12 (see #5) for all “S” transactions on the Transactions List.

Complete WAREN'S MONTH-END PROCEDURES 1, 2 and 5 on pages 12 and 13 for sales journal and general journal only.

Due:

1. Sales journal (be sure you foot and cross foot and post) (photocopy).

2. Trial balance: use the excel file on the web.

Check Figures: Sales Journal A/R column 59,007.00

SUA Instructions on the web under SUA

General Ledger Accounting Procedures

ACG 306

SourceDocument

TrialBalance

LedgerJournal

Subsidiary Ledger

Transaction List (Green)• Document Symbol:•

•Complete the appropriate documents and record in Journal

•No documents are used for this type of transaction; record in the appropriate journal

•Documents are not required by you. Record in the appropriate journal.

• Mark each transaction as S (#1), CR (#2), P (#3) ,CD (#4), PR (#5), YE (#6)

YES

NO

NO

45

Received customer PO#ST3107 (document #4) in the mail from Clayburn University, approved their credit and shipped the goods. All goods ordered were shipped, except that only 45 shoulder pad sets were available for shipment.

RK

33

From Price list

Sales Journal


Inv. or Subs. Subs. CreditCr. Memo Acct. Post Acct. Rec. Sales Returns Sales

Date Customer Number No. G/L 10200 G/L 30200 G/L 30100Dec. 2 Rosemont University 727 406 P 4,174.00 4,174.00Dec. 7 Clayborn University 728 407 P 7,252.00 7,252.00Dec. 9 E. Wisconsin University 729 410 P 21,872.00 21,872.00Dec. 13 Branch College 730 408 P 1,656.00 1,656.00Dec. 19 Clayborn University 731 407 P 15,025.00 15,025.00Dec. 24 E. Wisconsin University CM 42 410 P (3,480.00) 3,480.00Dec. 24 Rosemont University 732 406 P 6,247.50 6,247.50

------------------- ------------------- ------------------- Monthly totals 52,746.50 3,480.00 56,226.50

=========== =========== ===========P P P

Debit

xx xx

AR Subsidiary Ledger

407 CLAYBORN UNIVERSITY13210 S. UptonLogansport, Indiana 46947 CREDIT LIMIT: $125,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Dec. 7 Invoice # 728 7,252.00 7,252.00Dec. 14 Payment # 728 7,252.00 0.00Dec. 19 Invoice # 731 15,025.00 15,025.00

XXXXXX