1 / 23

Manual Accounting Systems

Manual Accounting Systems. Accounts Receivable Subsidiary Ledger. Customer Accounts. A. B. C. D. Accounts Payable Subsidiary Ledger. Creditor Accounts. A. B. C. D. General Ledger and Subsidiary Ledgers. General Ledger. Cash 11. Accts. Rec. 12. Supplies 14. Accts. Pay. 21.

cashley
Download Presentation

Manual Accounting Systems

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Manual Accounting Systems

  2. Accounts Receivable Subsidiary Ledger Customer Accounts A B C D Accounts Payable Subsidiary Ledger Creditor Accounts A B C D General Ledger and Subsidiary Ledgers General Ledger Cash 11 Accts. Rec. 12 Supplies 14 Accts. Pay. 21

  3. Special Journals recorded in recorded in Revenue journal Purchases journal recorded in Cash receipts journal BUYING recorded in Cash payments journal SELLING Providing services on account Receipt of cash from any source Purchase of items on account Payment of cash for any purpose

  4. The Revenue Journal

  5. Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 1 2 3 4 5 6 The Revenue Journal All sales on account are recorded in this journal. Each sales invoice is listed in numerical order.

  6. Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 2006 1 2 3 4 5 6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 The Revenue Journal Performed services on credit to MyMusic.com, $2,200.

  7. The Revenue Journal Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 2006 1 2 3 4 5 6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 Notice that only one line is required to make the entry.

  8. Posting from the Revenue Journal Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 2006 1 2 3 4 5 6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 To update the MyMusicClub.com account, the $2,200 debit is posted to the accounts receivable subsidiary ledger.

  9. 2006 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 2006 Mar. 2 R35 2,200 2,200 Posting from the Revenue Journal Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 1 2 3 4 5 6 Accounts Receivable Subsidiary Ledger MyMusicClub.com Date Item P.R. Debit Credit Balance

  10. 2006 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 2006 Mar. 2 R35 2,200 2,200 Posting from the Revenue Journal Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 1 2 3 4 5 6 Accounts Receivable Subsidiary Ledger MyMusicClub.com Date Item P.R. Debit Credit Balance This procedure is repeated for each posting to the accounts receivable subsidiary ledger.

  11. Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 2003 2006 1 2 3 4 5 6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 Posting from the Revenue Journal Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com 1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00 Assume that similar entries were journalized and posted during the month of March.

  12. Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 2006 1 2 3 4 5 6 Posting from the Revenue Journal Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com 1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00 31 9 6 0 0 00 On March 31, the revenue journal is totaled and ruled.

  13. Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 2006 1 2 3 4 5 6 Posting the Revenue Journal Total Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com 1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00 31 9 6 0 0 00 Next, the revenue journal’s total ($9,600) is posted to the general ledger.

  14. Revenue Journal, page 35 Posting the Revenue Journal Total GENERAL LEDGER Accounts Receivable Account No. 12 ACCOUNT Balance Post. Ref. Dr. Cr. Date Item Cr. Dr. 2006 Mar. 1 Balance 3 400 00 31 9 600 00 13 000 00 R35

  15. By placing the account number here, we indicate that $9,600 has been debited toAccounts Receivable in the general ledger. Posting the Revenue Journal Total Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 2006 1 2 3 4 5 6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com 1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00 31 9 6 0 0 00 (12)(41)

  16. GENERAL LEDGER Fees Earned ACCOUNT Account No. 41 Balance Post. Ref. Dr. Cr. Date Item Cr. Dr. 2006 Mar. 31 R35 9 600 00 9 600 00 Posting the Revenue Journal Total

  17. Placing “41” here indicates that $9,600 has been posted to the credit side ofFees Earnedin the general ledger. Posting the Revenue Journal Total Page 35 Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit 1 2 3 4 5 6 2006 1 2 3 4 5 6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com 1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00 31 9 6 0 0 00 (12)(41)

  18. The Cash Receipts Journal

  19. The Cash Receipts Journal All transactions that involve the receipt of cash are recorded in the cash receipts journal.

  20. The Cash Receipts Journal CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. 2006 Mar. 1 Rent Revenue 400 400 NetSolutions received $400 cash on March 1 for the month’s rent.

  21. The Cash Receipts Journal CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. 2006 Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 During March, NetSolutions collected cash from three customers.

  22. CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. 2006 Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 Posting the Cash Receipts Journal Each account under “Accounts Receivable Cr.” is posted to the accounts receivable subsidiary ledger.

  23. CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 2006 Mar. 1 Bal. 3,400 18 R35 2,650 6,050 Posting the Cash Receipts Journal 2006 Accounts Receivable Subsidiary Ledger Web Cantina Date Item P.R. Debit Credit Balance 19 3,400 2,650

More Related