Mahasiswa mampu membuat laporan dengan melengkapi siklus akuntansi sampai dengan menyusun income statement dan balance sheet

  Accounting Systems and Internal Controls 6542– SRI HANDAYANI, SE, MM, MAk, CPMA PROGRAM STUDI MANAJEMEN & AKUNTANSI FAKULTAS EKONOMI DAN BISNIS FEB103 PENGANTAR AKUNTANSI I + PERTEMUAN #8

  

Mahasiswa mampu memahami Sistem

Akuntansi dan Internal Controll

TKT306 - Perancangan Tata Letak Fasilitas 6623 - Taufqur Rachman

  2 KEMAMPUAN AKHIR YANG DIHARAPKAN

  

Mahasiswa mampu membuat laporan

dengan melengkapi siklus akuntansi

sampai dengan menyusun income

statement dan balance sheet

  TKT306 - Perancangan Tata Letak Fasilitas 6623 - Taufqur Rachman

  3 KEMAMPUAN AKHIR YANG DIHARAPKAN

Chapter 5 Accounting Systems and Internal Controls Accounting,

   21

st

   Edition Warren Reeve Fess PowerPoint Presentation by Douglas Cloud _{Professor Emeritus of Accounting Pepperdine University} ^{© Copyright 2004 South-Western, a division of Thomson Learning. All rights reserved.} _{Task Force Image Gallery clip art included in this electronic presentation is used with the}

  

Some of the action has been automated, so

click the mouse when you see this

lightning bolt in the lower right-hand

corner of the screen. You can point and

click anywhere on the screen.

  

Some of the action has been automated, so

click the mouse when you see this

lightning bolt in the lower right-hand

corner of the screen. You can point and

click anywhere on the screen.

  

Objectives

Objectives

  1. Defne an accounting system and

After studying this

  After studying this describe its implementation.

chapter, you should

chapter, you should

  2. List the three objectives of internal

be able to:

be able to:

  control, and defne and give examples of the fve elements of internal control.

  

3. Journalize and post transactions in a

  manual accounting system that uses subsidiary ledgers and special journals.

  Objectives Objectives

  4. Describe and give examples of additional subsidiary ledgers and modifed special journals.

  

5. Apply computerized accounting to

the revenue and collection cycle.

  6. Describe the basic features of e- commerce.

  

Basic

Accounting

System

  

Basic

Accounting

System

  Implementation Design Analysis F E E D B A C K

  Objectives of Internal

Control

  

Objectives of Internal

Control

1. assets are safeguarded and used for business purposes.

  2. business information is accurate.

  3. employees comply with laws and regulations.

  

To provide reasonable assurance that:

  

Elements of Internal Control

  1. Control environment

  2. Risk assessment

  3. Control procedures

  4. Monitoring

  5. Information and communication

  

Elements of Internal Control

  1. Control environment

  2. Risk assessment

  3. Control procedures

  4. Monitoring

  5. Information and communication

  

Management philosophy and

operating style influences the

control environment.

  Management philosophy and operating style influences the control environment.

  

Elements of Internal Control

Elements of Internal Control

  1. Control environment

  2. Risk assessment

  3. Control procedures

  4. Monitoring

  5. Information and communication Once risks are identified, they can be

  

Once risks are identified, they can be

  analyzed to estimate their significance, to

  

analyzed to estimate their significance, to

  assess their likelihood of occurring, and to

  

assess their likelihood of occurring, and to

determine actions that will minimize them.

determine actions that will minimize them.

  

Elements of Internal Control

Elements of Internal Control

  1. Control environment

  2. Risk assessment

  3. Control procedures

  4. Monitoring

  5. Information and communication

  Control Procedures Control Procedures  Competent Personnel  Rotating Duties  Mandatory Vacations  Separating Responsibilities for

  Related Operations

 Separating Operations, Custody

of Assets, and Accounting

   Proofs and Security Measures

  Control Procedures

Control Procedures

   Competent Personnel  Rotating Duties  Mandatory Vacations

  

 Separating Responsibilities for

Related Operations

   Separating Operations,

  Custody of Assets, and Accounting

   Proofs and Security Measures

  Separating Otherwise, the Separating Otherwise, the Responsibilities for following abuses are Responsibilities for following abuses are

  1. Orders may be placed on the basis of Related Operations

possible:

  Related Operations possible: friendship with a supplier, rather than on price, quality, and other objective factors.

  2. The quantity and quality of supplies received may not be verifed, thus causing payment for supplies not received or poor-quality supplies.

  

3. Supplies may be stolen by the employee.

  4. The validity and accuracy of invoices may be verifed carelessly.

  Control Procedures

Control Procedures

   Competent Personnel  Rotating Duties  Mandatory Vacations  Separating Responsibilities for

  Related Operations  Separating Operations,

  Custody of Assets, and Accounting

   Proofs and Security Measures

  Independent check Independent check Independent check Custody of Assets Accounting Operations Operations

  

Elements of Internal Control

Elements of Internal Control

  1. Control environment

  2. Risk assessment

  3. Control procedures

  4. Monitoring

  5. Information and communication

  

Clues to Potential Problems

Clues to Potential Problems

  Warning signs with regard to people: 1. Abrupt changes in lifestyle.

  

2. Close social relationships with suppliers.

  3. Refusing to take a vacation.

  4. Frequent borrowing from other employees.

  5. Excessive use of alcohol or drugs.

  Clues to Potential Problems Clues to Potential Problems

  

Warning signs from the accounting system:

  1. Missing documents or gaps in transaction numbers.

  2. An unusual increase in customer refunds.

  3. Diferences between daily cash receipts and bank deposits.

  4. Sudden increase in slow payments.

  5. Backlog in recording transactions.

  Manual Accounting Systems

  

General Ledger and Subsidiary Ledgers

General Ledger and Subsidiary Ledgers

   General Ledger Accounts Receivable

  Cash

11 Subsidiary Ledger

  Customer Accounts Accts. Rec.

  12 A B C D

  Accounts Payable

  Supplies

  14 Subsidiary Ledger

  Creditor Accounts Accts. Pay.

21 A B C D

  

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

  The Revenue Journal

The Revenue Journal

  5

  5

  4

  3

  2

  1

  6

  4

  All sales on account are recorded in this journal. Each sales invoice is listed in numerical order.

  3

  2

  1

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  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  

All sales on account are recorded in

this journal. Each sales invoice is

listed in numerical order.

  6

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  2

  The Revenue Journal

The Revenue Journal

  Mar. 2 615 MyMusicClub.com 2 2 0 0 00

  

Performed services on credit to

MyMusic.com, $2,200.

²⁰⁰⁶

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  6

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6 Performed services on credit to MyMusic.com, $2,200.

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  2

  The Revenue Journal

The Revenue Journal

  Mar. 2 615 MyMusicClub.com 2 2 0 0 00

  

Notice that only one line is

required to make the entry. ²⁰⁰⁶

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  Page 35

  6

  5

  4

  3

  2

  1

6 Notice that only one line is required to make the entry.

  Posting from the Revenue Journal

Posting from the Revenue Journal

  2

  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. ²⁰⁰⁶

  

the $2,200 debit is posted to the accounts

receivable subsidiary ledger.

  5

  4

  3

  1

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  6

  5

  4

  3

  2

  1

  Page 35

6 To update the MyMusicClub.com account,

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  3

  2006 Posting from the Revenue Journal

  MyMusicClub.com Mar. 2 R35 2,200 2,200

  Accounts Receivable Subsidiary Ledger Date Item P.R. Debit Credit Balance

  6 ²⁰⁰⁶ Mar. 2 615 MyMusicClub.com 2 2 0 0 00

  5

  4

  2

  Page 35

  1

  6

  5

  4

  3

  2

  1

  

Posting from the Revenue Journal

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  3

  2006

This procedure is repeated for each posting

to the accounts receivable subsidiary ledger.

  MyMusicClub.com Mar. 2 R35 2,200 2,200

  Accounts Receivable Subsidiary Ledger Date Item P.R. Debit Credit Balance

  6 ²⁰⁰⁶ Mar. 2 615 MyMusicClub.com 2 2 0 0 00

  5

  4

  2

  Page 35

  1

  6

  5

  4

  3

  2

  1

  Posting from the Revenue Journal

Posting from the Revenue Journal

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  3

  Posting from the Revenue Journal

Posting from the Revenue Journal

  Mar. 2 615 MyMusicClub.com 2 2 0 0 00

  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 ²⁰⁰⁶

  

Assume that similar entries were

journalized and posted during the

month of March.

  journalized and posted during the month of March.

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  4

  2

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  1

  6 ²⁰⁰³

  5

  4

  3

  2

  1

6 Assume that similar entries were

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  3

  31 9 6 0 0 00

  

On March 31, the revenue journal is

totaled and ruled.

  On March 31, the revenue journal is totaled and ruled.

  1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00

  6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com

  5

  4

  2

  Page 35

  1

  6 ²⁰⁰⁶

  5

  4

  3

  2

  1

  Posting from the Revenue Journal

Posting from the Revenue Journal

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  3

  31 9 6 0 0 00

  

Next, the revenue journal’s total

($9,600) is posted to the general ledger.

  Next, the revenue journal’s total ($9,600) is posted to the general ledger.

  1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00

  6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com

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  4

  2

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  1

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  5

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  Posting the Revenue Journal Total

Posting the Revenue Journal Total

   ACCOUNT Accounts Receivable Account No. 12 Balance Dr. Cr. Date Dr. Cr. Item Post. Ref. 2006 Mar. 1 Balance

  3 400 00 GENERAL LEDGER

  31 9 600 00 13 000 00 R35 Revenue Journal, page 35 Posting the Revenue Journal Total Posting the Revenue Journal Total

  By placing the account number here, we indicate that $9,600 has been debited to Accounts Receivable in the general ledger.

  1

  31 9 6 0 0 00

  1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00

  6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com

  5

  4

  3

  2

  6 ²⁰⁰⁶

  Posting the Revenue Journal Total

Posting the Revenue Journal Total

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  2

  1

  Page 35

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  (12)(41)

  Posting the Revenue Journal Total Posting the Revenue Journal Total

GENERAL LEDGER

ACCOUNT

   Fees Earned Account No. 41 Balance Post. Dr. Cr. Date Item Ref.

  Cr. Dr. 2006

Mar. 31 R35 9 600 00 9 600 00

  Revenue Journal Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

  3

  Earned in the general ledger.

  (12)(41) Placing “41” here indicates that $9,600 has been posted to the credit side of Fees

  31 9 6 0 0 00

  1 7 5 0 00 18 617 Web Cantina 2 6 5 0 00 27 618 MyMusicClub.com 3 0 0 0 00

  6 Mar. 2 615 MyMusicClub.com 2 2 0 0 00 6 616 RapZone.com

  5

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  1

  6 ²⁰⁰⁶

  5

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  1

  Posting the Revenue Journal Total

Posting the Revenue Journal Total

  

The Cash Receipts

Journal

The Cash Receipts

Journal

  All transactions that involve the receipt of cash are recorded in the cash receipts journal. All transactions that involve the receipt of cash are recorded in the cash receipts journal.

  The Cash Receipts Journal The Cash Receipts Journal The Cash Receipts Journal 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

  NetSolutions received $400 cash on March 1 for the month’s rent. on March 1 for the month’s rent. The Cash Receipts Journal 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

  During March, NetSolutions collected cash from three customers. cash from three customers. Posting the Cash Receipts Journal Posting 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

  Each account under “Accounts

  Each account under “Accounts

  Receivable Cr.” is posted to the accounts

  Receivable Cr.” is posted to the accounts receivable subsidiary ledger. Posting the Cash Receipts Journal Posting 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

  Accounts Receivable Subsidiary Ledger

  Web Cantina

   Date Item P.R. Debit Credit Balance 2006 Mar. 1 Bal.

  3,400

  18 R35 2,650 6,050 2,650 Posting the Cash Receipts Journal Posting 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

  Accounts Receivable Subsidiary Ledger

  Web Cantina

   Date Item P.R. Debit Credit Balance 2006 Mar. 1 Bal.

  3,400

  18 R35 2,650 6,050 2,650 The Cash Receipts Journal The Cash Receipts Journal

  After all journalizing and posting After all journalizing and posting to the accounts receivable to the accounts receivable subsidiary ledger for the month is subsidiary ledger for the month is complete, the columns are totaled. complete, the columns are totaled.

  

The Cash Receipts Journal

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

   31 400 7,350 7,750

  The total “Cash Dr.” column

  The total “Cash Dr.” column

  equals the total of the two

  equals the total of the two credit columns. credit columns. Posting the Cash Receipts Journal Posting 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

GENERAL LEDGER

   31 400 7,350 7,750

  Account: Accounts Receivable No. 12 The three circled items are

  The three circled items are Date Item P.R. Debit Credit Balance

  2006 Mar. 1 Bal 3,400

  posted to the general ledger.

   posted to the general ledger.

31 R35 9,600 13,000 Let’s post Accounts Receivable.

  Let’s post Accounts Receivable. Posting the Cash Receipts Journal Posting 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

GENERAL LEDGER

   31 400 7,350 7,750

  Account: Accounts Receivable No. 12 Date Item P.R. Debit Credit Balance 2006

  Mar. 1 Bal 3,400 

31 R35 9,600 13,000 31 7,350 CR14 5,650

  Posting the Cash Receipts Journal Posting 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

   ( ) (12) 

  1,750

   31 400 7,350 7,750

  

Posting the Cash Receipts Journal

Posting the Cash Receipts Journal

  The $7,750 total in the Cash Debit column is posted to Cash in a similar manner. The $7,750 total in the Cash

  Debit column is posted to Cash in a similar manner. Posting the Cash Receipts Journal Posting the Cash Receipts Journal

  The $400 credit to Rent Revenue could have been posted earlier, but posting it at the same time as other general ledger accounts is proper.

  The $400 credit to Rent Revenue could have been posted earlier, but posting it at the same time as other general ledger accounts is proper.

  

Posting the Cash Receipts Journal

Posting the Cash Receipts Journal

  A completely posted cash receipts journal is shown in the next slide. A completely posted cash receipts journal is shown in the next slide. Posted Cash Receipts Journal Posted Cash Receipts Journal

CASH RECEIPTS JOURNAL

  Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr.

  2006

42 Mar. 1 Rent Revenue 400 400

  3,400

19 Web Cantina 

  3,400

   28 MyMusicClub.com  2,200 2,200

   ( ) (12) (11)

   30 RapZone.com  1,750

  

  1,750

   31 400 7,350 7,750

  Accounts Receivable Control Account If the accounts receivable account in the general ledger only shows summary totals, where are the individual customer balances? If the accounts receivable account in the general ledger only shows summary totals, where are the individual customer balances? ACCOUNT Accounts Receivable No. 12 GENERAL LEDGER Date Item P.R. Debit Credit Balance Mar. 1 Bal 3,400

  31 R35 9,600 13,000 7,350 5,650

  31 CR14 

GENERAL LEDGER

  Accounts ACCOUNT Accounts Receivable No. 12 Receivable Date Item P.R. Debit Credit Balance Mar. 1 Bal 3,400

   Control

31 R35 9,600 13,000 Account

  7,350 5,650

31 CR14 MyMusicClub.com Date Item P.R. Debit Credit Balance 3/2 R352,200 2,200 3/27 R353,000 5,200 3/28 CR14 2,200 3,000 Accounts RapZone.com Receivable Date Item P.R. Debit Credit Balance 3/6 R35 1,750 1,750 Subsidiary 3/30 CR14 1,750 -- Ledger Web Cantina Date Item P.R. Debit Credit Balance

   3/1 Bal. 3,400 3/18 R352,650 6,050 3/19 CR14 3,400 2,650 The Purchases Journal

  The purchases journal is designed for recording all purchases on account. The purchases journal is designed for recording all purchases on account. On March 3, 2003, NetSolutions purchased supplies from Howard Journalizing in the Purchases Journal

  Journalizing in the Purchases Journal PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post

  

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

Page 11 Mar. 3 Howard Supplies 600 600

  2006

  Posting the Purchases Journal Posting the Purchases Journal

  Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2006 Mar. 3 Howard Supplies 600 600 Accounts Payable Subsidiary Ledger

  Howard Supplies

  Date Item P.R. Dr. Cr. Balance 2006

  Mar 3 600 600

  To keep the accounts payable subsidiary ledger current, this entry is posted on March 3.

  PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  Page 11 Accounts Payable and Supplies will be posted as totals.

  Mar. 3 Howard Supplies 600 600 2006

  Posting the Purchases Journal Posting the Purchases Journal Journalizing in the Purchases Journal Journalizing in the Purchases Journal

  Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2006 Mar. 3 Howard Supplies 600 600

7 Donnelly Supplies 420 420

  On March 7, NetSolutions purchased supplies from Donnelly

  PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  Page 11 Mar. 3 Howard Supplies 600 600 2006

  Journalizing in the Purchases Journal Journalizing in the Purchases Journal

7 Donnelly Supplies 420 420

  Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  Page 11 Mar. 3 Howard Supplies 600 600 2006

  On March 12, NetSolutions purchased office equipment from Jewett Business Systems, $2,800.

  7 Donnelly Supplies 420 420

  12 Jewett Bus. Sys. 2,800 Off. Equip. 2,800

Because there isn’t a special column for

  

Office Equipment, this purchase was

recorded under “Other Accounts Dr.”

  Journalizing in the Purchases Journal Journalizing in the Purchases Journal

PURCHASES JOURNAL

  Journalizing in the Purchases Journal Journalizing in the Purchases Journal

  Page 11

PURCHASES JOURNAL

  Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2006 Mar. 3 Howard Supplies 600 600

  7 Donnelly Supplies 420 420

  12 Jewett Bus. Sys. 2,800 Off. Equip. 2,800

  19 Donnelly Supplies 1,450 1,450

  27 Howard Supplies 960 960 Now, let’s look at the rest of March’s entries (assume that all postings to the accounts payable

subsidiary ledger have been made).

  Totaling the Purchases Journal Totaling the Purchases Journal

  Page 11

PURCHASES JOURNAL

  Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2006 Mar. 3 Howard Supplies 600 600

  7 Donnelly Supplies 420 420

  12 Jewett Bus. Sys. 2,800 Off. Equip. 2,800

  19 Donnelly Supplies 1,450 1,450

  27 Howard Supplies 960 960

  31 6,230 3,430 2,800

  At the end of March, all columns are totaled

  At the end of March, all columns are totaled

  $6,230 = $3,430 + $ 2,800 $6,230 = $3,430 + $ 2,800 and equality of debits and credits is verified.

  and equality of debits and credits is verified.

  Posting the Purchases Journal Posting the Purchases Journal

  Page 11

PURCHASES JOURNAL

  Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2006 Mar. 3 Howard Supplies 600 600

  7 Donnelly Supplies 420 420

  12 Jewett Bus. Sys. 2,800 Off. Equip. 2,800

  19 Donnelly Supplies 1,450 1,450

  27 Howard Supplies 960 960

  31 6,230 3,430 2,800

  The next step is to post to the

  Page 11

PURCHASES JOURNAL

  Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2006 Mar. 3 Howard Supplies 600 600

  7 Donnelly Supplies 420 420

  12 Jewett Bus. Sys. 2,800 Off. Equip. 2,800

  19 Donnelly Supplies 1,450 1,450

  27 Howard Supplies 960 960

  31 6,230 3,430 2,800 GENERAL LEDGER ACCOUNT Accounts Payable No. 21 Date Item P.R. Debit Credit Balance Mar. 1 Bal

  1,230

31 P11 6,230 7,460

  Page 11

PURCHASES JOURNAL

  Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2003 Mar. 3 Howard Supplies 600 600

  7 Donnelly Supplies 420 420

  12 Jewett Bus. Sys. 2,800 Off. Equip. 2,800

  19 Donnelly Supplies 1,450 1,450

  27 Howard Supplies 960 960

  31 6,230 3,430 2,800

  

(21)

GENERAL LEDGER ACCOUNT Accounts Payable No. 21 Date Item P.R. Debit Credit Balance Mar. 1 Bal

  1,230

31 P11 6,230 7,460

  Page 11

PURCHASES JOURNAL

  Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2003 Mar. 3 Howard Supplies 600 600

  7 Donnelly Supplies 420 420 12 Jewett Bus. Sys. 2,800 Off. Equip. 18 2,800

  19 Donnelly Supplies 1,450 1,450

  27 Howard Supplies 960 960

  31 6,230 3,430 2,800 (21) (14)

  Supplies is posted as a total of $3,430 to general ledger account 21. Office

Equipment is posted individually.

  Page 11

PURCHASES JOURNAL

  Accts. Other Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

  2006 Mar. 3 Howard Supplies 600 600

  7 Donnelly Supplies 420 420 12 Jewett Bus. Sys. 2,800 Off. Equip. 18 2,800

  19 Donnelly Supplies 1,450 1,450

  27 Howard Supplies 960 960

  31 6,230 3,430 2,800 (21) (14)

  ( ) NetSolutions had only one entry in the “Other Accounts Dr.” column. If there were others, they would be posted individually.

  Therefore, the total is not posted. A check

  The Cash Payments Journal All payments are recorded All payments are recorded in the cash payments in the cash payments journal. NetSolutions journal. NetSolutions makes all payments by makes all payments by check. check.

  

Let’s make all of the cash

payment journal entries

for March.

  Let’s make all of the cash payment journal entries for March.

  PAGE 7

CASH PAYMENTS JOURNAL

  Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2006

  

Mar. 2 150 Rent Expense 1,600 1,600

On March 2, NetSolutions paid the rent for March by issuing

  

Check No. 150 for $1,600.

CASH PAYMENTS JOURNAL

  Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr PAGE 7 On March 15, issued Check No. 151 to

Grayco Supplies on account, $1,230.

  2006

Mar. 2 150 Rent Expense 1,600 1,600

15 151 Grayco Supplies

  1,230 1,230

  PAGE 7

CASH PAYMENTS JOURNAL

  Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2006

  

Mar. 2 150 Rent Expense 1,600 1,600

15 151 Grayco Supplies 1,230 1,230 

  Accounts Payable Subsidiary Ledger

  Grayco Supplies

  Let’s post to the accounts payable Date Item P.R. Dr. Cr. Balance subsidiary ledger at this time to keep Mar. 3 Bal.

  1,230

• --- 15 CP7 1,230

  the creditor’s account current.

CASH PAYMENTS JOURNAL

  Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr PAGE 7 On March 21, issued Check No.

  152 as payment on account to

Jewett Business Systems, $2,800.

  2006

Mar. 2 150 Rent Expense 1,600 1,600

15 151 Grayco Supplies

  1,230 1,230 21 152 Jewett Business Sys. 2,800 2,800 

  

CASH PAYMENTS JOURNAL

  Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr PAGE 7 On March 22, issued Check No.

  153 as payment on account to

Donnelly Supplies, $420.

  2006

Mar. 2 150 Rent Expense 1,600 1,600

15 151 Grayco Supplies

  1,230 1,230 21 152 Jewett Business Sys. 2,800 2,800 22 153 Donnelly Supplies. 420 420 

  

CASH PAYMENTS JOURNAL

  Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr PAGE 7 On March 30, issued Check No. 154 as

payment for utility bill, $1,050.

  2006

Mar. 2 150 Rent Expense 1,600 1,600

15 151 Grayco Supplies

  1,230 1,230 21 152 Jewett Business Sys. 2,800 2,800 22 153 Donnelly Supplies. 420 420 30 154 Utilities Expense 1,050 1,050

    

CASH PAYMENTS JOURNAL

  Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr PAGE 7 On March 31, issued Check No. 155 on account to Howard

  Supplies, $600 2006

  

Mar. 2 150 Rent Expense 1,600 1,600

15 151 Grayco Supplies 1,230 1,230 21 152 Jewett Business Sys. 2,800 2,800

  22 153 Donnelly Supplies. 420 420 30 154 Utilities Expense 1,050 1,050 31 155 Howard Supplies

  600 600   