So, you want to learn
Bookkeeping!
Special Journals
by Bean Counter's Dave Marshall
Here I am once more. I hope your learning this stuff so that you won't need me quite as often and I can reduce my fees that I bill you. With help from me your journal entries for the December transactions are recorded as follows in the Sales and Cash Receipts Journals.
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Sales Journal Page 1
Entry No. Date Customer Account
Name/Description
Invoice Number Post Ref. Accounts Receivable
Debit
Sales
Credit
Sales Tax Payable
Credit
1 Dec 2, xxxx Mom & Pop Shop 1000 X 2000 2000  
2 Dec 7, xxxx Needing Computers 1001 X 1000 1000  
3 Dec 17, xxxx Newbie Needing Help 1002 X 500 500  
4 Dec 22, xxxx Bean Counter Accoutring 1003 X 700 700  
5 Dec 26, xxxx Know Itall 1004 X 2700 2700  
6 Dec 31, xxxx Fix It Daddy Repair Shop 1005 X 1320 1200 120
               
SJ-12 Dec 31, xxxx Totals For Month     8220 8100 120
          (X) (X) (X)

Our Sales 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 Customer's name or account and any other explanation or additional information about the transaction
  • Reference Column to record our sales invoice numbers
  • Posting Reference to provide information when a Subsidiary Ledger also needs to be updated. This tells us whether the Subsidiary Accounts Receivable Ledger has also been posted (updated).
  • Debit Column for Accounts Receivable and Credit Columns for Sales and Sales Taxes Payable
  • The X in the Posting Reference Column tells us that the transaction has been posted to the Customer's Accounts Receivable 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.
  • SJ12
    SJ-abbreviation for Sales Journal
    12-stands for the month of December
Cash Receipts Journal Page 1
Entry No. Date Customer Account
Name/Description
Post Ref. A/R
Credit
Sales
Credit
Other Credits GL-Account Post Ref. Credit
Amount
Cash
Debit
1 Dec 5, xxxx Big Shot
Check # 235
      Owner's Capital (X) 20000 20000
2 Dec 6, xxxx Our Friendly Bank
Bank Transfer
      Note Payable-Bank (X) 50000 50000
3 Dec 13, xxxx Mom & Pop Shop
Check # 555
Invoice # 1000
X 2000         2000
4 Dec 17, xxxx Needing Computers
Check # 700
Invoice # 1001
X 1000         1000
5 Dec 26, xxxx Newbie Needing Help
Check # 8532
Invoice # 1002
X 250         250
6 Dec 26, xxxx Counter/Cash Sale     2100       2100
                   
CR-12 Dec 31, xxxx Totals For Month   3250 2100     70000 75350
        (X) (X)       (X)

Our Cash Receipts 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 customer's name or account 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 Receivable Ledger has also been posted (updated).
  • Debit Column for our Cash and Credit Columns for our Accounts Receivable Control Account and Cash Sales.
  • Special Other Credits Column with its related Posting Reference and Amount Columns.
    We use these three columns to record any other transactions resulting from receiving cash. Some examples are collection of a Note Receivable or borrowing money from a bank (Note Payable). In other words, we use these columns for any transactions that don't have their own special credit column.
  • The X in the Posting Reference Column tells us that the transaction has been posted to the customer's Accounts Receivable 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.
  • CR12
    CR-abbreviation for Cash Receipts Journal
    12-stands for the month of December

Need Subsidiary Ledger

Our Accounts Receivable Subsidiary Ledger

Name:Mom & Pop Shop
Address:xxx Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Dec 2, xxxx Invoice # 1000 SJ-1-1 2000   2000
Dec 13, xxxx Check # 555 CR-1-3   2000 0
Name:Needing Computers
Address:xxx Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Dec 7, xxxx Invoice # 1001 SJ-1-2 1000   1000
Dec 17, xxxx Check # 700 CR-1-4   1000 0
Name:Newbie Needing Help
Address:xxx Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Dec 17, xxxx Invoice # 1002 SJ-1-3 500   500
Dec 26, xxxx Check # 8532 CR-1-5   250 250
Name:Bean Counter Accounting
Address:xxx Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Dec 22, xxxx Invoice # 1003 SJ-1-4 700   700
Name:Know Itall
Address:xxx Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Dec 26, xxxx Invoice # 1004 SJ-1-5 2700   2700
Name:Fix It Daddy repair Shop
Address:xxx Anywhere St, Anywhere City, Anywhere State
Date Item Post Ref. Debit Credit Balance
Dec 31, xxxx Invoice # 1005 SJ-1-6 1320   1320

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

Customer Current Balance
Mom & Pop Shop 0
Needing Computers 0
Newbie Needing Help 250
Bean Counter Accounting 700
Know Itall 2700
Fix It Daddy Repair Shop 1320
   
Total Due From Customers 4970

According to my calculation, the Accounts Receivable Control Account should have a balance of $4970.

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