Accounting: Proprietorship vs. Partnership

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.

Tuesday, November 13, 2007

Proprietorship vs. Partnership

Proprietorship

one person business
one capital
all revenue to one person
one person is responsible

Partnership

two or more people business
two or more capitals
revenue is shared between owners
all owners are responsible

2 comments:

adriana said...: I like your cartoons !!!!!!!!!!!!!; November 16, 2007 at 2:20 PM
DIVA said...: Today you will begin to post Purchases and Sales transactions to the general ledger and Subsidiary ledgers. This process is nothing new. Proving the journal, proving cash..........You have done it all before. The new task will be to create a Schedule of Accounts Payable and Receivable. Let me know if you have questions.; November 26, 2007 at 2:02 PM

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Chapter 12

Tuesday, November 13, 2007

Proprietorship vs. Partnership

2 comments: