So, you want to learn
Bookkeeping!
Special Journals
by Bean Counter's Dave Marshall
Copyright © 2003 Bean Counter
Here I am again your friendly Bean Counter. My meter is running again. With help from me your journal entries for the December transactions are recorded as follows in the Purchases and Cash Disbursements Journals.
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Purchase Journal Page 1
Entry No. Date Supplier Account/Name Invoice Number Post Ref. Accounts Payable
Credit
Purchases
Debit
Adv
Debit
Utilities
Debit
Other
Accounts
Debit
Post Ref Amount
Debit
1 Dec 1, xxxx Our Local Daily 765 X 1000   1000        
2 Dec 7, xxxx Wholesale Computers 897 X 5000 5000          
3 Dec 9, xxxx Speedy Office Supplies 5432 X 500       Office Supplies (X) 500
                       
PJ-12 Dec 31, xxxx Monthly Totals     6500 5000 1000       500
          (X) (X) (X)        

Our Purchase Journal has these basic features:

  • Header with the Name of the Journal and Page
  • Entry Number used as a reference to a specific transaction on the journal's page
  • Date Column to record the date of the transaction
  • Description Column to record the name of the payee/supplier (who written to), and any other explanation or additional information about the transaction
  • Invoice Number Reference Column to record our supplier's invoice number
  • Posting Reference to provide information when a Subsidiary Ledger also needs to be updated. This tells us whether the Subsidiary Accounts Payable Ledger has also been posted (updated).
  • Debit Columns for all regularly occurring types of expenses or expenditures and a Credit Column for our Accounts Payable Control Account
  • Special Other Debits Column with its related Posting Reference Column
    We use these three columns to record debits for any transactions that don't have their own debit account special column.
  • The X in the Posting Reference Column tells us that the transaction has been posted to the supplier's Accounts Payable Subsidiary Ledger
  • The (X) 's in the table tell us that the totals and the individual amounts have been posted to the General Ledger Accounts for the month.
  • PJ12
    PJ-abbreviation for Purchase Journal
    12-stands for the month of December
Cash Disbursements Journal Page 1
Entry No. Date Supplier Account
Name/Description
Post Ref. A/P
Debit
Purchases
Debit
Other GL Accounts Debit Post Ref. Amount
Debit
Cash
Credit
Check Number
1 Dec 1, xxxx Big Shot       Owner's Draw (X) 2500 2500 5000
2 Dec 7, xxxx Horrible Landlord       Rent (X) 2000 2000 5002
3 Dec 8, xxxx Shock U Utilities       Utilities (X) 1500 1500 5003
4 Dec 9, xxxx Bean Counter Accounting
Invoice # 555
      Professional Fees (X) 500 500 5004
5 Dec 9, xxxx Reach Out & Touch       Telephone Expense (X) 300 300 5005
6 Dec 11, xxxx Wholesale Computers
Invoice #897
X 5000         5000 5006
7 Dec 14, xxxx Speedy Office Supplies
Invoice # 5432
X 500         500 5007
8 Dec 19, xxxx Postmaster       Postage Expense (X) 50 50 5008
9 Dec 22, xxxx Not Junk Yet
Invoice # 123111
    1000       1000 5009
10 Dec 27, xxxx Our Local Daily
Invoice # 765
X 1000         1000 5010
11 Dec 30, xxxx Honest Bob's Carlot       Vehicles (X) 15000 15000 5011
12 Dec 31, xxxx Our Friendly Bank       Bank Loan-Payable

Interest

(X)

(X)

150

350

500 5012
                     
CD-12 Dec 31, xxxx Monthly Totals   6500 1000     22350 29850  
        (X) (X)       (X)  

Our Cash Disbursements Journal has these basic features:

  • Header with the Name of the Journal and Page
  • Entry Number used as a reference to a specific transaction on the journal's page
  • Date Column to record the date of the transaction
  • Description Column to record the name of the payee/supplier (who written to), and any other explanation or additional information about the transaction
  • Posting Reference to provide information when a Subsidiary Ledger also needs to be updated. This tells us whether the Subsidiary Accounts Payable Ledger has also been posted (updated).
  • Debit Columns for all regularly occurring types of expenses or expenditures and for our Accounts Payable Control Account and a Credit Column for Cash.
  • Special Other Debits Column with its related Posting Reference and Amount Columns.
  • The X in the Posting Reference Column tells us that the transaction has been posted to the supplier's Accounts Payable Subsidiary Ledger
  • The (X) 's in the table tell us that the totals and the individual amounts have been posted to the General Ledger Accounts for the month.
  • CD12
    CD-abbreviation for Cash Disbursements Journal
    12-stands for the month of December

Accounts Payable Subsidiary Ledger

Name:Our Local Daily
Address:500 Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Nov 30, xxxx Beginning Balance       0
Dec 1, xxxx Invoice # 765 PJ-1-1   1000 1000
Dec 1, xxxx Check # 5010 CD-1-10 1000   0
Name:Wholesale Computers
Address:515 Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Nov 30, xxxx Beginning Balance       0
Dec 7, xxxx Invoice # 897 PJ-1-2   5000 5000
Dec 11, xxxx Check # 5006 CD-1-6 5000   0
Name:Speedy Office Supplies
Address:525 Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Nov 30, xxxx Beginning Balance       0
Dec 9, xxxx Invoice # 5432 PJ-1-3   500 500
Dec 14, xxxx Check # 5007 CD-1-7 500   0

Assuming these are our only suppliers, what should the balance of our General Ledger Account-Accounts Payable Control be ?

Supplier Current Balance
Our Local Daily 0
Wholesale Computers 0
Speedy Office Supply 0
   
Total Owed To Suppliers 0

I didn't even need an adding machine to add up these balances. You didn't know I was that smart did you ? Our Accounts Payable Control Account should have a zero balance.

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