CHAPTER THIRTEEN

1
CHAPTER THIRTEEN

• SPECIAL JOURNALS

2
SPECIAL JOURNALS

• Designed for recording only certain kinds of
  transactions
• Save time journalizing and posting transactions
• Transactions entered on a single line.
• Column totals are posted periodically.
• General Journal still needed for some
  transactions.

3
SPECIAL JOURNALS
SPECIAL JOURNAL
TRANSACTIONS
Sales Journal
Sales on account
Only sales on account, not cash sales.
4
SPECIAL JOURNALS
SPECIAL JOURNAL
TRANSACTIONS
Sales Journal
Sales on account
Cash Receipts Journal
Cash receipts
Any transaction in which cash is received. Cash
Sales are recorded in this journal.
5
SPECIAL JOURNALS
SPECIAL JOURNAL
TRANSACTIONS
Sales Journal
Sales on account
Cash Receipts Journal
Cash receipts
Purchases Journal
Purchases on account
ON ACCOUNT purchases of MERCHANDISE only
6
SPECIAL JOURNALS
SPECIAL JOURNAL
TRANSACTIONS
Sales Journal
Sales on account
Cash Receipts Journal
Cash receipts
Purchases Journal
Purchases on account
Cash Payments Journal
Cash payments
Any transaction in which cash is paid.
7
SALES TRANSACTIONS
Lets review the General Journal entries for
these transactions.

• April 4 Made sale no. 133C on account to Enrico
  Lorenzo, 1,520 plus 76 sales tax
• April 10 Made sale no. 134C on account to Brenda
  Myers, 40 plus 22 sales tax
• April 18 Made sale no. 105D on account to Edith
  Walton, 980 plus 49 sales tax
• April 21 Made sale no. 202B on account to Susan
  Chang, 620 plus 31 sales tax
• April 24 Made sale no. 162A on account to Heidi
  Schwitzer, 1,600 plus 80 sales tax

8
GENERAL JOURNAL
DATE
DESCRIPTION
PR
DEBIT
CREDIT
Apr.
4
1,596 00
1
Accts. Receivable/E. Lorenzo
2
1,520 00
Sales
3
76 00
Sales Tax Payable
4
sale no. 133C
5
4 lines are used to prepare one journal entry!!
6
7
8
9
10
11
9
GENERAL JOURNAL
DATE
DESCRIPTION
PR
DEBIT
CREDIT
Apr.
4
1,596 00
1
Accts. Receivable/E. Lorenzo
2
1,520 00
Sales
3
76 00
Sales Tax Payable
4
sale no. 133C
5
6
10
Accts. Receivable/B. Myers
462 00
7
440 00
Sales
8
22 00
Sales Tax Payable
9
sale no. 134C
10
11
10
GENERAL JOURNAL continued
DATE
DESCRIPTION
PR
DEBIT
CREDIT
18
1,029 00
Accts. Receivable/E. Walton
12
13
980 00
Sales
14
Sales Tax Payable
49 00
15
sale no. 105D
16
17
Accts. Receivable/S. Chang
651 00
21
18
Sales
620 00
19
31 00
Sales Tax Payable
20
sale no. 202B
21
22
11
GENERAL JOURNAL continued
DATE
DESCRIPTION
PR
DEBIT
CREDIT
24
1,680 00
Accts. Receivable/H. Schwitzer
23
All the entries involved the same accounts!!
24
1,600 00
Sales
25
Sales Tax Payable
80 00
26
sale no. 162A
27
28
29
30
31
32
33
12
SALES JOURNAL

• A column for each account involved in Sales on
  account transactions
• Accounts Receivable (Debit), Sales (Credit),
  Sales Tax Payable (Credit)
• Four steps for entering a transaction
• Step 1 Enter Date.
• Step 2 Enter Sales number.
• Step 3 Enter Customer.
• Step 4 Enter Dollar amount.

13
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
4
133C
Enrico Lorenzo
1,596
2
3
The whole transaction is recorded on ONE
line. Account names are not entered.
4
5
6
7
8
9
10
11
14
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
7
Now lets look at posting from the Sales
Journal.
8
9
10
11
15
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
Step 1a Total the amount columns.
8
9
10
11
16
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
Step 1b Verify that the total of the debit
column equals the total of the credit columns.
8
9
10
11
17
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
Debits 5,418
Credits 5,418
8
9
10
11
18
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
8
Step 1c Rule the columns.
9
10
11
19
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
8
Lets post the Accounts Receivable total.
9
10
11
20
FOUR-COLUMN ACCOUNT
122
ACCOUNTS RECEIVABLE
Account
Account No.
BALANCE
DATE
ITEM
PR
DR.
CR.
DR.
CR.
20--
1
12,000
Balance
Apr.
30
Step 2 Enter the date.
21
FOUR-COLUMN ACCOUNT
122
ACCOUNTS RECEIVABLE
Account
Account No.
BALANCE
DATE
ITEM
PR
DR.
CR.
DR.
CR.
20--
1
12,000
Balance
Apr.
5,418
30
Step 3 Enter the amount.
22
FOUR-COLUMN ACCOUNT
122
ACCOUNTS RECEIVABLE
Account
Account No.
BALANCE
DATE
ITEM
PR
DR.
CR.
DR.
CR.
20--
1
12,000
Balance
Apr.
5,418
30
17,418
Step 4 Enter the new balance.
23
FOUR-COLUMN ACCOUNT
122
ACCOUNTS RECEIVABLE
Account
Account No.
BALANCE
DATE
ITEM
PR
DR.
CR.
DR.
CR.
20--
1
12,000
Balance
Apr.
5,418
S6
30
17,418
Step 5 Enter S for Sales Journal and the
journal page number.
24
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
(122)
8
Step 6 Enter the account number below the column
total.
9
10
11
25
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
(122)
(401)
(231)
8
Steps 2 - 6 will be repeated for the Sales and
Sales Tax Payable columns.
9
10
11
26
SALES JOURNAL
Page 1
Accts. Receivable Debit/Sales Credit
To Whom Sold
PR
Sale No.
Date
1
2
3
4
A company that does not charge sales tax, such as
a wholesaler, will use a single column Sales
Journal.
5
6
7
8
9
10
11
27
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
(122)
(401)
(231)
8
Each transaction must also be posted to the
Accounts Receivable ledger.
9
10
11
28
ACCOUNTS RECEIVABLE LEDGER
Enrico Lorenzo
Name
Address
5240 Tousley Court, Indianapolis, IN 46224-5678
BALANCE
DATE
ITEM
PR
DEBIT
CREDIT
20--
1,596
4
1,596
S6
Apr.

• Step 1 Enter the date.
• Step 2 Enter the amount.
• Step 3 Update the balance.
• Step 4 Enter S (Sales Journal) and 6
  (page number) in the PR column.

29
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
?
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
3
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
Susan Chang
651
31
5
24
1,680
80
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
(122)
(401)
(231)
? is entered to indicate the transaction has
been posted to the Accounts Receivable ledger.
8
9
10
11
30
SALES JOURNAL
Page 6
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Debit
To Whom Sold
PR
Sale No.
Date
20--
1
?
1,520
76
Apr
133C
Enrico Lorenzo
1,596
4
2
10
134C
Brenda Myers
462
440
22
?
3
?
105D
18
Edith Walton
1,029
980
49
4
21
202B
620
?
Susan Chang
651
31
5
24
1,680
80
?
162A
Heidi Schwitzer
1,600
6
5,418
258
5,160
7
(122)
(401)
(231)
The other sales are posted to the Accounts
Receivable ledger in the same manner.
8
9
10
11
31
CASH RECEIPTS JOURNAL

• Used to record only cash receipt transactions
• Includes separate columns for
• Cash (Debit)
• Bank Credit Card Expense (Debit)
• Accounts Receivable (Credit)
• Sales (Credit)
• Sales Tax Payable (Credit)
• General (Credit)

32
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
1
2
3
EXAMPLE April 14, received cash on account from
Enrico Lorenzo for sale no. 133C, 1,596.
4
5
6
7
8
9
10
11
33
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
2
3
Step 1 Enter date.
4
5
6
7
8
9
10
11
34
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
2
3
Step 2 Enter name of account credited.
4
5
6
7
8
9
10
11
35
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
2
3
This column is used for two purposes 1. To
identify the customer name for any collection on
account. This column is used whenever the
Accounts Receivable Credit column is used. 2. To
enter the appropriate account name whenever the
General Credit column is used.
4
5
6
7
8
9
10
11
36
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
3
Step 3 Enter the dollar amounts.
4
5
6
7
8
9
10
11
37
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
3
4
5
6
7
8
9
10
11
38
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
4
5
Cash was also received on account on April 20th
and 28th.
6
7
8
9
10
11
39
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
4
5
6
7
8
9
10
11
40
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
5
6
7
8
9
10
11
41
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
5
6
7
8
9
10
11
42
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
5
Now lets journalize cash sales for April 30th
of 3,600 plus tax of 180.
6
7
8
9
10
11
43
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
This column is left blank for cash sales.
6
7
8
9
10
11
44
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
6

3,600
180
3,780
?
7
Total Credits Total Debits
8
9
10
11
45
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
7
Bank credit card sales are similar to cash
sales, no entry is made in the Account Credited
column.
8
9
10
11
46
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
2,500
6
Bank Credit Card Sales of 2,500 were made this
month.
7
8
9
10
11
47
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
2,500
6
Sales Tax on these sales was 125.
7
8
9
10
11
48
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
6
The service charge on these bank credit card
sales was 100.
7
8
9
10
11
49
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
The cash received was 2,525 (2,500sales
125tax) - 100service chg.
7
8
9
10
11
50
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
Example April 30, received cash for rent
revenue 600.
7
8
9
10
11
51
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
7
8
We need to credit Rent Revenue and debit Cash.
9
10
11
52
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
30
600
7
8
Since there is no column for Rent Revenue, we
must use the General Credit column.
9
10
11
53
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
30
600
Rent Revenue
7
When the General Credit column is used, the
Account Credited column must identify the
specific General Ledger account affected.
8
9
10
11
54
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
8
9
10
11
55
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
30
600
Rent Revenue
7
Notes Payable
30
3,000
8
Borrowing money would be recorded in a similar
manner.
9
10
11
56
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
3,000
3,000
8
9
10
11
57
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
1,029
Edith Walton
4
30
5
30
6
30
600
Rent Revenue
7
Notes Payable
30
3,000
8
On a daily basis, the amounts in the General
Credit column are posted.
9
10
11
58
FOUR-COLUMN ACCOUNT
412
RENT REVENUE
Account
Account No.
BALANCE
DATE
ITEM
PR
DR.
CR.
DR.
CR.
20--
1
1,800
Balance
Apr.
600
30
2,400
CR7
CR for Cash Receipts Journal.
59
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
30
600
Rent Revenue
412
7
Notes Payable
30
3,000
8
General Ledger account number
9
10
11
60
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
30
600
Rent Revenue
412
7
Notes Payable
30
3,000
201
8
Notes Payable is posted in the same manner.
9
10
11
61
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
30
600
Rent Revenue
412
7
Notes Payable
30
3,000
201
8
3,600
3,087
9
At the end of the month, the columns are totaled.
10
11
62
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
3,000
3,000
8
3,600
3,087
305
100
12,992
6,100
9
Next, we verify that the debit columns equal the
total of the credit columns.
10
11
63
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
3,000
3,000
8
3,600
3,087
305
100
12,992
6,100
9
3,600 3,087 6,100 305 13,092 Credits
10
11
64
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
3,000
3,000
8
3,600
3,087
305
100
12,992
6,100
9
100 12,992 13,092 Debits DEBITS
CREDITS!!!
10
11
65
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
3,000
3,000
8
3,600
3,087
305
100
12,992
6,100
9
Each column total (except General) is posted at
the end of the month.
10
11
66
FOUR-COLUMN ACCOUNT
122
ACCOUNTS RECEIVABLE
Account
Account No.
BALANCE
DATE
ITEM
PR
DR.
CR.
DR.
CR.
20--
1
12,000
Balance
Apr.
5,418
S6
30
17,418
30
CR7
3,087
14,331
CR for Cash Receipts Journal
67
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
3,000
3,000
8
3,600
3,087
305
100
12,992
6,100
9
(122)
Account Number indicates total was posted.
10
11
68
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
3,000
3,000
8
3,600
3,087
305
100
12,992
6,100
9
(122)
(231)
(513)
(101)
(401)
10
Remaining columns are posted in the same manner.
11
69
CASH RECEIPTS JOURNAL
Page 7
Cash Debit
Sales Tax Pay. Credit
Sales Credit
Accts. Rec. Credit
Bank C C Exp. Debit
General Credit
1
1,596
1,596
2
462
462
3
1,029
1,029
4
3,600
180
3,780
5
125
100
2,500
2,500
6
600
600
7
3,000
3,000
8
3,600
3,087
305
100
12,992
6,100
9
(122)
(231)
(513)
(101)
?
(401)
10
? indicates the column total is not posted.
11
70
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
30
600
Rent Revenue
412
7
Notes Payable
30
3,000
201
8
3,600
3,087
9
Postings to the subsidiary Accounts Receivable
ledger are made daily.
10
11
71
ACCOUNTS RECEIVABLE LEDGER
Enrico Lorenzo
Name
Address
5240 Tousley Court, Indianapolis, IN 46224-5678
BALANCE
DATE
ITEM
PR
DEBIT
CREDIT
20--
1,596
4
1,596
S6
Apr.
14
1,596
CR7
72
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
?
Apr
14
Enrico Lorenzo
1,596
2
20
Brenda Myers
462
3
28
Edith Walton
1,029
4
30
5
30
6
30
600
Rent Revenue
412
7
Notes Payable
30
3,000
201
8
3,600
3,087
9
? indicates transaction was posted to the
Accounts Receivable subsidiary ledger.
10
11
73
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
?
Apr
14
Enrico Lorenzo
1,596
2
?
20
Brenda Myers
462
3
?
28
Edith Walton
1,029
4
30
5
30
6
30
600
Rent Revenue
412
7
Notes Payable
30
3,000
201
8
3,600
3,087
9
The payments by Brenda and Edith are posted in
the same manner.
10
11
74
CASH RECEIPTS JOURNAL
Page 7
Accts. Rec. Credit
General Credit
Account Credited
PR
Date
20--
1
?
Apr
14
Enrico Lorenzo
1,596
2
?
20
Brenda Myers
462
3
?
28
Edith Walton
1,029
4
?
30
?
5
30
6
30
600
Rent Revenue
412
7
Notes Payable
30
3,000
201
8
3,600
3,087
9
? is entered into the PR column for cash sales
and bank credit card sales.
10
11
75
PURCHASES JOURNAL

• Purchases of MERCHANDISE for resale
• Only ON ACCOUNT
• Cash purchases would be recorded in the Cash
  Payments Journal.
• Single column format
• Purchases Debit/Accounts Payable Credit, OR
• Three column
• Purchases Debit, Freight-In Debit, Accounts
  Payable Credit

76
PURCHASES JOURNAL
Page 8
Purchases Debit/ Accounts Payable Credit
From Whom Purchased
PR
Invoice No.
Date
1
2
3
4
For our example, we will use a single column
Purchases Journal.
5
6
7
8
9
10
11
77
PURCHASES JOURNAL
Page 8
Purchases Debit/ Accounts Payable Credit
From Whom Purchased
PR
Invoice No.
Date
20--
1
3,300
Apr
4
631
Compucraft, Inc.
2
3
4
Example On April 4th, purchased merchandise
from Compucraft, Inc. 3,300 Invoice no. 631,
dated April 2, n/30.
5
6
7
8
9
10
11
78
PURCHASES JOURNAL
Page 8
Purchases Debit/ Accounts Payable Credit
From Whom Purchased
PR
Invoice No.
Date
20--
1
3,300
Apr
4
631
Compucraft, Inc.
2
8
927D
Datasoft
2,500
3
8,700
11
804
EZX Corp.
4
Printpro Corp.
17
611
800
5
23
Televax, Inc.
5,300
1465
6
7
All purchases transactions are journalized
in the same manner.
8
9
10
11
79
PURCHASES JOURNAL
Page 8
Purchases Debit/ Accounts Payable Credit
From Whom Purchased
PR
Invoice No.
Date
20--
1
3,300
Apr
4
631
Compucraft, Inc.
2
8
927D
Datasoft
2,500
3
8,700
11
804
EZX Corp.
4
Printpro Corp.
17
611
800
5
23
Televax, Inc.
5,300
1465
6
20,600
7
At the end of the month, the column is
totaled, ruled, and posted to the General Ledger
accounts.
8
9
10
11
80
FOUR-COLUMN ACCOUNT
501
PURCHASES
Account
Account No.
BALANCE
DATE
ITEM
PR
DR.
CR.
DR.
CR.
20--
1
17,400
Balance
?
Apr.
20,600
P8
30
38,000
P for Purchases Journal
81
PURCHASES JOURNAL
Page 8
Purchases Debit/ Accounts Payable Credit
From Whom Purchased
PR
Invoice No.
Date
20--
1
3,300
Apr
4
631
Compucraft, Inc.
2
8
927D
Datasoft
2,500
3
8,700
11
804
EZX Corp.
4
Printpro Corp.
17
611
800
5
23
Televax, Inc.
5,300
1465
6
20,600
7
(501)
Account Number indicates column total has been
posted.
8
9
10
11
82
FOUR-COLUMN ACCOUNT
202
ACCOUNTS PAYABLE
Account
Account No.
BALANCE
DATE
ITEM
PR
DR.
CR.
DR.
CR.
20--
1
4,800
Balance
?
Apr.
20,600
P8
30
25,400
83
PURCHASES JOURNAL
Page 8
Purchases Debit/ Accounts Payable Credit
From Whom Purchased
PR
Invoice No.
Date
20--
1
3,300
Apr
4
631
Compucraft, Inc.
2
8
927D
Datasoft
2,500
3
8,700
11
804
EZX Corp.
4
Printpro Corp.
17
611
800
5
23
Televax, Inc.
5,300
1465
6
20,600
7
(501)
(202)
Transactions are posted to the Accounts Payable
ledger on a daily basis.
8
9
10
11
84
ACCOUNTS PAYABLE LEDGER
Compucraft, Inc.
Name
Address
5240 Tousley Court, Indianapolis, IN 46224-5678
BALANCE
DATE
ITEM
PR
DEBIT
CREDIT
20--
3,300
4
3,300
P8
Apr.
85
PURCHASES JOURNAL
Page 8
Purchases Debit/ Accounts Payable Credit
From Whom Purchased
PR
Invoice No.
Date
20--
1
?
3,300
Apr
4
631
Compucraft, Inc.
2
8
927D
Datasoft
2,500
3
8,700
11
804
EZX Corp.
4
Printpro Corp.
17
611
800
5
23
Televax, Inc.
5,300
1465
6
20,600
7
(501)
(202)
? is placed in the PR column when posting is
completed.
8
9
10
11
86
PURCHASES JOURNAL
Page 8
Purchases Debit/ Accounts Payable Credit
From Whom Purchased
PR
Invoice No.
Date
20--
1
?
3,300
Apr
4
631
Compucraft, Inc.
2
?
8
927D
Datasoft
2,500
3
8,700
?
11
804
EZX Corp.
4
Printpro Corp.
17
611
800
?
5
23
Televax, Inc.
5,300
1465
?
6
20,600
7
(501)
(202)
The remaining transactions are posted in the same
manner.
8
9
10
11
87
CASH PAYMENTS JOURNAL

• Used to record only cash payments transactions
• Every transaction in the journal will involve a
  credit to the Cash account.
• Columns are set up in the journal for the most
  commonly affected accounts in cash payments
  transactions.

88
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
1
2
3
4
Example Payment of rent, 2,400 on April 2
5
6
7
8
9
10
11
89
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2
3
4
All cash payments (except those from Petty Cash)
should be made by check for good internal
control.
5
6
7
8
9
10
11
90
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
2
3
4
This column is used for two purposes 1. To
identify a supplier name for any payment on
account 2. To enter the appropriate account name
whenever the General Debit column is
used
5
6
7
8
9
10
11
91
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
Accts. Pay. Debit
General Debit
PurchasesDebit
1
2,400
2,400
2
3
4
5
6
7
8
9
10
11
92
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
2
4
308
3
4
Example On April 4 1,400 of merchandise was
purchased for cash.
5
6
7
8
9
10
11
93
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
1
2,400
2,400
2
1,400
1,400
3
4
5
6
7
8
9
10
11
94
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
2
4
308
3
B.B. Small
10
309
4
Example On April 10 payment was made on account,
4,800.
5
6
7
8
9
10
11
95
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
1
2,400
2,400
2
1,400
1,400
3
4,800
4,800
4
5
6
7
8
9
10
11
96
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
2
4
308
3
B.B. Small
10
309
4
14
310
Notes Payable
2,000
5
Example On April 14 payment was made on a note
payable, 2,000.
6
7
8
9
10
11
97
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
1
2,400
2,400
2
1,400
1,400
3
4,800
4,800
4
2,000
2,000
5
6
7
8
9
10
11
98
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
2
4
308
3
B.B. Small
10
309
4
14
310
Notes Payable
2,000
5
311
22
1,600
Gary L. Fishel, Drawing
6
Example On April 22 owner withdrew cash for
personal use, 1,600.
7
8
9
10
11
99
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
1
2,400
2,400
2
1,400
1,400
3
4,800
4,800
4
2,000
2,000
5
1,600
1,600
6
7
8
9
10
11
100
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
2
4
308
3
B.B. Small
10
309
4
14
310
Notes Payable
2,000
5
311
22
1,600
Gary L. Fishel, Drawing
6
312
24
EZX Corp.
7
Example On April 24 made payment on account
within the discount period.
8
9
10
11
101
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
1
2,400
2,400
2
1,400
1,400
3
4,800
4,800
4
2,000
2,000
5
1,600
1,600
6
8,700
87
8,613
7
8
9
10
11
102
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
2
4
308
3
B.B. Small
10
309
4
14
310
Notes Payable
2,000
5
311
22
1,600
Gary L. Fishel, Drawing
6
312
24
EZX Corp.
7
On a daily basis, the amounts in the General
Debit column are posted.
8
9
10
11
103
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
521
2
4
308
3
B.B. Small
10
309
4
14
201
310
Notes Payable
2,000
5
311
312
22
1,600
Gary L. Fishel, Drawing
6
312
24
EZX Corp.
7
CP for Cash Payments journal is entered in the
ledger accounts PR column, and the account
number is entered in the journals PR column.
8
9
10
11
104
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
521
2
4
308
3
B.B. Small
10
309
4
14
201
310
Notes Payable
2,000
5
311
312
22
1,600
Gary L. Fishel, Drawing
6
312
24
EZX Corp.
7
6,000
At the end of the month, the columns are totaled,
equality of debits and credits is verified, and
totals are posted to the General Ledger.
8
9
10
11
105
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
Accts. Pay. Debit
General Debit
PurchasesDebit
1
2,400
2,400
2
1,400
1,400
3
4,800
4,800
4
2,000
2,000
5
1,600
1,600
6
8,700
87
8,613
7
6,000
13,500
87
20,813
1,400
8
87 ?
20,813
1,400
6,000 ?
13,500 ?
9
10
20,900
20,900


11
106
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
1
2,400
2,400
2
1,400
1,400
3
4,800
4,800
4
2,000
2,000
5
1,600
1,600
6
8,700
87
8,613
7
6,000
13,500
87
20,813
1,400
8
?
? indicates the column should not be posted.
9
10
11
107
CASH PAYMENTS JOURNAL
Page 12
Cash Credit
Purch. Disc. Credit
PurchasesDebit
Accts. Pay. Debit
General Debit
1
2,400
2,400
2
1,400
1,400
3
4,800
4,800
4
2,000
2,000
5
1,600
1,600
6
8,700
87
8,613
7
6,000
13,500
87
20,813
1,400
8
?
(202)
(501)
(501.2)
(101)
9
Account numbers indicate the total were posted.
10
11
108
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
521
2
4
308
3
B.B. Small
10
309
4
14
201
310
Notes Payable
2,000
5
311
312
22
1,600
Gary L. Fishel, Drawing
6
312
24
EZX Corp.
7
6,000
8
Transactions affecting the Accounts Payable
ledger are posted daily.
9
10
11
109
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
521
2
4
308
3
B.B. Small
?
10
309
4
14
201
310
Notes Payable
2,000
5
311
312
22
1,600
Gary L. Fishel, Drawing
6
312
24
?
EZX Corp.
7
6,000
8
? is entered to indicate the transaction has
been posted.
9
10
11
110
CASH PAYMENTS JOURNAL
Page 12
General Debit
Account Debited
PR
Check No.
Date
20--
1
Apr.
307
2
2,400
Rent Expense
521
2
4
308
?
3
B.B. Small
?
10
309
4
14
201
310
Notes Payable
2,000
5
311
312
22
1,600
Gary L. Fishel, Drawing
6
312
24
?
EZX Corp.
7
6,000
8
? is also entered for transactions that do not
require individual postings.
9
10
11