special journals: sales and cash receipts making accounting relevant in a merchandising business,...
TRANSCRIPT
Special Journals: Sales and Cash ReceiptsSpecial Journals: Sales and Cash Receipts
Making Accounting Relevant
In a merchandising business, revenue
from sales fuels business operations.
Making Accounting Relevant
In a merchandising business, revenue
from sales fuels business operations.
What tactics do businesses in your area use to increase sales?
Section 1 The Sales Journal
Section 1 The Sales JournalWhat You’ll Learn
To identify the special journals and how they are used.
How to record sales of merchandise on account in a sales journal.
How to post from the sales journal to the accounts receivable subsidiary ledger accounts.
How to foot, prove, total, and rule the sales journal.
How to post column totals from the sales journal to the general ledger.
What You’ll Learn To identify the special journals and
how they are used. How to record sales of merchandise on
account in a sales journal. How to post from the sales journal to
the accounts receivable subsidiary ledger accounts.
How to foot, prove, total, and rule the sales journal.
How to post column totals from the sales journal to the general ledger.
Why It’s Important
The use of the sales journal
provides a systematic method of
keeping track of sales on account.
Why It’s Important
The use of the sales journal
provides a systematic method of
keeping track of sales on account.
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Key Terms
special journals
sales journal
footing
Key Terms
special journals
sales journal
footing
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Special Journals
Special journals have amount columns used to record debits and credits to specific general ledger accounts.
Special Journals
Special journals have amount columns used to record debits and credits to specific general ledger accounts.
Sales Journal sales of merchandise on account
Sales Journal sales of merchandise on account
Cash Receipts Journal receipt of cashCash Receipts Journal receipt of cash
Purchases Journal purchase of any asset on account
Purchases Journal purchase of any asset on account
Cash Payments Journal payment of cash, including payments by check
Cash Payments Journal payment of cash, including payments by check
Journal TransactionJournal Transaction
The Sales JournalThe sales journal is a special journal
used to record sales of merchandise on account.
The Sales JournalThe sales journal is a special journal
used to record sales of merchandise on account.
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Record the amount of the merchandise sold on account
Record the amount of the merchandise sold on account
Record the amount of sales tax onthe sale
Record the amount of sales tax onthe sale
Record the total amount to be received from the customer on account
Record the total amount to be received from the customer on account
Recording Sales of Merchandise on AccountRecording Sales of Merchandise on Account
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Business Transaction
JOURNAL ENTRY
On December 1, On Your Mark sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50.
Posting a Sales Journal Entry to the Accounts Receivable Subsidiary Ledger
To keep the balances of the customer accounts current, sales journal transactions are posted daily to the accounts receivable subsidiary ledger.
Posting a Sales Journal Entry to the Accounts Receivable Subsidiary Ledger
To keep the balances of the customer accounts current, sales journal transactions are posted daily to the accounts receivable subsidiary ledger.
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Footing, Totaling, Proving, and Ruling the Sales JournalFooting, Totaling, Proving, and Ruling the Sales Journal
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Posting the Total of the Sales Credit Column
Next, transfer the amount in the Sales column to the general ledger.
Posting the Total of the Sales Credit Column
Next, transfer the amount in the Sales column to the general ledger.
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Posting the Total of the Sales Tax Payable Credit Column
Next, transfer the amount in the Sales Tax Payable column to the general ledger.
Posting the Total of the Sales Tax Payable Credit Column
Next, transfer the amount in the Sales Tax Payable column to the general ledger.
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Posting the Total of the Accounts Receivable Debit Column
The last amount to be transferred to the general ledger is the Accounts Receivable Debit column.
Posting the Total of the Accounts Receivable Debit Column
The last amount to be transferred to the general ledger is the Accounts Receivable Debit column.
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Proving the Sales Journal at the End of a Page
If a business has many transactions in one month, and it is impossible to fit them onto one journal page, the journal page must be totaled and ruled before a new page is started.
Proving the Sales Journal at the End of a Page
If a business has many transactions in one month, and it is impossible to fit them onto one journal page, the journal page must be totaled and ruled before a new page is started.
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
Check Your UnderstandingCheck Your Understanding
1. What are the most commonly used
special journals?
1. What are the most commonly used
special journals?
Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)
2. What does an account number
written in parentheses under a
column total mean?
2. What does an account number
written in parentheses under a
column total mean?