Accounting: Ch. 11 Journalising Sales and Cash Receits

Chapter 12

1: Explain what a subsidiary ledger is and list the ones that we will be using as we post transactions from the journal to the ledgers?A subsidaiary is a ledger that is summarized in a single general ledger account.Accounts payable ledger and accounts receivable ledger.

2: Explain what a controlling account is and list the ones we will be using?A controlling account is an account in a general ledger that summarizes all accounts in a subsidiary.Schedule of accounts payable and schedule of accounts receivable.

3:Explain where controlling accounts are maintained?in the Subsidairy ledger

4:What is the relationship between a controlling account and a subsidairy ledger?Controlling account equals the total of all account balances in its ralated subsidiary ledger.

5: Identify in writing the two schedules that we will prepare?Schedule of accounts payable and schedule of accounts receivable.

6: List the rules for posting a journal’s column totals?General amount columns are not posted. Special amount columns are posted

7: Explain why the 3-column account form used in an accounts receivable ledger has a debit balance column?they are assets

8: What is the title of the balance amount column of the accounts payable ledger form and why is that title used?Credit because it is a liability

9: List the steps for starting a new page in the accounts payable ledger?1:Write the vendor mane on the Vendor line2: Write the vendor # in the Vendor No. line3: Write the date on the date column4: Write the word balance in the Item column5: Put a check mark in the Post. Ref. column6: Write the balance in the proper column.

10: List the steps for posting to the accounts receivable ledger?1:Write the date in the Date column2: Write the journal page # in the Post. Ref. column3: Write the amount in the proper column4: Add the amount in the debit/credit column to the previous debit/credit column and write the new amount in the debit/credit balance column5: Write the customer # in the Post. Ref. column of the journal.

Wednesday, November 14, 2007

Ch. 11 Journalising Sales and Cash Receits

Customer:A person or business to whom merchandise or services are sold
Sales Tax:A tax on a sale of merchandise or servise
Cash Sale:A sale in which cash is received for the total amount of the sale at the time of the transaction
Credit Card Sale:A sale in which a credit card is used for the total amount of the sale at the time of the transaction

Journalizing cash and credit card sales