The Accounting Cycle for a Merchandising Corporation!!! Chapte r 16: Special Journal s: Sales & Cash Receipt s
The Accounting Cycle for a Merchandising Corporation!!!
Chapter 16:
Special Journal
s: Sales & Cash Receipt
s
ESSENTIAL OUTCOMES
16. Understand two special journal: Sales Journal & Cash Receipts Journal by being able to:
a. Identify special journals & how they are used.b. Record sales of merchandise on account in the
sales journalc. Record receipt of all cash into Cash Receipts
Journald. Post from the Sales Journal to the General
Journal & A/R Subsidiary Ledgere. Post from the Cash Receipts Journal to General
Journal & A/R Subsidiary Ledgerf. Foot, prove, total & rule sales journal & cash
receipts journalg. Define the accounting terms used in this
chapter
SPECIAL JOURNAL Have amounts columns used to record
debits and credits to specific general ledger accounts
Most transactions recorded on one line Simplify journalizing & posting process
FOUR SPECIAL JOURNALS
1. Sales journal2. Cash receipts
journal3. Purchases
journal4. Cash
payments journal
Sale of merchandise on account
Receipt of all cash Purchase of any
asset account Payment of all
cash
The Sales Journal
THE SALES JOURNAL
Special journal used to record sales of merchandise on account
Sales journal has:a) Space for page numberb) Columns for date & posting referencec) Separate column to record the sales
slip numberd) Column to record name of charge
customere) Three special amount columns:
1. Sales Credit column2. Sales Tax Payable Credit column3. A/R Debit Column
THE SALES JOURNAL
SALES JOURNAL
On December 1 On Your Mark sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50
SALES JOURNAL
Posting transactions from the Sales Journal to the A/R Subsidiary Ledger.
FOOTING, TOTALING, PROVING & RULING THE SALES JOURNAL
POSTING TOTALS IN SALES CREDIT COLUMN
POSTING TOTAL OF SALES TAX PAYABLE COLUMN
POSTING THE TOTAL OF THE A/R DEBIT COLUMN
PROVING SALES JOURNAL AT END OF PAGE
The
Cash Receipts
Journal
CASH RECEIPTS JOURNAL
THE CASH RECEIPTS JOURNAL
Special journal used to record receipt of all cash received or (cash receipt)—debit to Cash in Bank
Cash Receipts Journal has:a) Space for page numberb) Columns for date & posting referencec) Separate column to record the sales slip
numberd) Column to record name of charge customere) Six special amount columns:
1. General Credit column2. Sales Credit column3. Sales Tax Payable Credit column4. A/R Credit column5. Sales Discounts Debit column6. Cash in Bank Debit column
THE CASH RECEIPTS JOURNAL COLUMNS
General Credit
Sales Credit
Sales Tax Payable Credit
A/R Credit
Sales Discounts Debit
Cash in Bank Debit
Record credit to accounts where there is no special column
Merchandise purchased by customers using cash or bank cards
Sales tax collected Record payments from
charge customers Record amount o cash
discounts taken by charging customers
Record amount of cash actually received in transaction
CASH RECEIPT JOURNAL
On December 5, Casey Klein pays $212.00 on account, R301.
RECORDING CASH FROM CUSTOMERS ON ACCOUNT WITH DISCOUNT
Received $1,470 from South Branch High School Athletics in payment of Sales Slip 51 for $1500 less discount of $30, Receipt 302.
RECORDING CASH SALES
RECORDING BANKCARD SALES
RECEIVED $30 FROM MANDY HARRIS FOR PURCHASE OF A CALCULATOR THAT THE BUSINESS WAS NO LONGER USING, RECEIPT 303.
POSTING INDIVIDUAL AMOUNTS FROM CR JOURNAL TO THE SUBSIDIARY LEDGER.
POSTING GENERAL CREDIT COLUMN
FOOTING, TOTAL, PROVING & RULING CR JOURNAL
POSTING COLUMN
TOTALS TO GENERAL LEDGER
PROVING ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
THAT’S ALL FOLKS!!!
Now, on to some class activities on our
topic!!!