PowerPoint Presentation
Workshop week 6Subsidiary LedgersSpecial JournalsSpecial
JournalsGeneral journals can be inefficient where there are many
transactions
Group similar transactions together and record them in a special
purpose journalcredit salessales journalcredit purchasespurchases
journalcash paymentscash payments journalcash receipts cash
receipts journalSALES JOURNALRecords only credit sales of
inventoryTotal posted to general ledger monthlyDetail by debtor
posted to subsidiary ledger dailyAdvantagesEach transaction
recorded on a single lineEntries do not require a narrationPosting
efficiency achieved
3SALES JOURNALSales JournalDateInvoice NoAccountPost RefSalesGST
CollectionsAccounts ReceivableJan 2401R. Abbot1 1001101 2105402D.
Ball900909907403N. Camp820829029404R. Abbot1 4101411 55119405A.
Evans920921 01221406J. Ford8508593526407A. Evans1 5501551
70529408N. Camp750758258 3008309 130(400)(215)(104)4Posted
dailyPURCHASES JOURNALRecords only credit purchasesCan be used for
items other than inventoryTotal posted to general ledger
monthlyDetail by creditor posted to subsidiary ledger
dailyAdvantagesas for sales journal
5PURCHASES JOURNALPurchases JournalDateRecordDate
InvoiceAccountTermsPost RefPurchasesGST OutlaysAccounts PayableJan
3Jan 2Kirby Ltdn/301 9001902 09064Risk Ltdn/301 2001201 32088Dunn
Supplyn/301 4101411 5511312Dunn Supplyn/301 8201822 0022018CSR
Ltd2/10 n/30820829022424Cooper Ltd2/10 n/30900909902726Risk Ltd2/10
n/302 8102813 0913029CSR Ltdn/309009099011 7601 17612
936(510)(160)(210)6Posted at end of monthCASH RECEIPTS
JOURNALRecords all receipts of cash including chequesRecords each
receipt and total bankedTotals posted to general ledger
monthlyDetail (debtors only) posted to subsidiary ledger
dailyColumns set up for common receipts7CASH RECEIPTS JOURNALCash
Receipts JournalDateAccountPost RefCash at BankDiscount
AllowedSalesAccounts ReceivableOther AccountsJan 3Capital30010
00010 0008Sales28028010R. Abbot1 078221 10020D.
Ball90090020Sales22022031Bank Loan20525002 50014978221 4001 10012
500(100)(511)(400)(104)(x)8NB: GST has been excluded from example
to save spaceCASH PAYMENTS JOURNALRecords all payments of
cashRecords each payment and cheque numberTotals posted to general
ledger monthlyDetail (creditors only) posted to subsidiary ledger
dailyColumns set up for common payments9CASH PAYMENTS JOURNALCash
Payments JournalDateAccountPost RefOther AccountsAccounts
PayablePurchasesCash at BankDiscount Received4Purchases6806807Rent
Exp51632032014Store Equip17041041028Purchases84084029Prepaid
Ins11051051030Kirby Ltd1 9001 90030Cooper Ltd900882181 2402 8001
5205 54218(x)(210)(510)(100)(401)10NB: Cheque number and GST have
been excluded from example to save spacePosting special
journalsOnly the totals of the special journals are posted to
general ledger. This happens at the end of the month. (The account
number is placed in brackets under the column total to show which
GL account each total was posted to)
Posting special journalsThe detail is posted to the appropriate
subsidiary ledger (SL) daily.
The SL account number, ie customer account number for example,
is placed in the Post Ref column of the special journal to show
which account has been updated with the details of the
transaction
This detail would usually include invoice details such as
invoice date, invoice number and amount of the transaction
We must update subsidiary ledger accounts daily to maintain
accuracy and operating purposesSubsidiary LedgersControl Accounts
and Subsidiary LedgersSummary information Control account (in the
general ledger)Detailed informationSubsidiary ledger - often used
forAccounts receivableAccounts payableInventoryFixed assets General
LedgerAccounts Receivable ControlDateDebitCreditBalanceNov 16
500Nov 305 10011 600Nov 306 9004 70014Schedule of Accounts
ReceivableAs at 30 NovemberP. Able$1 800R. Baker2 400D. Cane 500$4
700D. CaneDateDebitCreditBalanceNov 12 200Nov 129003 100Nov 282
600500R. BakerDateDebitCreditBalanceNov 11 100Nov 31 1000Nov 202
4002 400Subsidiary LedgerP. AbleDateDebitCreditBalanceNov 13 200Nov
81 8005 000Nov 163 2001 800Abnormal balances in subsidiary
ledgersOverpayments by customers can lead to credit balance in
accounts receivableIf we overpay on an accounts payable this will
show a debit balance situation. Sometimes we owe a creditor who is
also our customer In these cases we use Account Set Off
In this case we would:Dr Accounts payable controlCr Accounts
receivable controlNow complete the following:16
Hint: Complete all Purchases first.17Purchases JournalDateInv
No.AccountTermsPostRef.PurchasesGST OutlaysAccounts Payable2/3 408
Dye Ltd 2/10 420 42 462 n/306/3 606 R Rider 2/10 600 60 660
n/3019/3 1614 D Donnelly 2/10 510 51 561 n/30 1 530 153 1 683 (500)
(121) (201) Sales Journal18DateInv. No.AccountTermsPost
Ref.SalesGST CollAccounts Rec11/3228R. Jetty1
140114125414/3229Dynamics Ltd99099108923/3230Dockey
Ltd7807885828/3231G. Peck60060660$3
5103513861(400)(221)(104)Accounts Payable Subsidiary ledgers19Dye
LtdDatePost RefDebitCreditBalance2/3PJ462462R. RiderDatePost
RefDebitCreditBalance6/3PJ660660D DonnellyDatePost
RefDebitCreditBalance19/3PJ561561Purchases
Journal20DateInv.NoAccountTermsPost Ref.PurchasesGST
OutlaysAccounts Payable2/3408Dye Ltd2/10,n/30420424626/3606R
Rider2/10,n/306006066019/31614D Donnelly2/10,n3051051561$1
5301531683 (500)(121)(201)Accounts Receivable Subsidiary ledger21R.
JettyDatePost RefDebitCreditBalance11/3SJ12541254Dynamics
LtdDatePost RefDebitCreditBalance14/3SJ10891089Dockey LtdDatePost
RefDebitCreditBalance23/3SJ858858Accounts Receivable Subsidiary
ledger22G PeckDatePost RefDebitCreditBalance28/3SJ660660Sales
Journal23DateInv. No.AccountTermsPost Ref.SalesGST CollAccounts
Rec11/3228R. Jetty1 140114125414/3229Dynamics
Ltd99099108923/3230Dockey Ltd7807885828/3231G. Peck60060660$3
5103513861(400)(221)(104)24
AN INTRODUCTION TO MYOB25
26Use of the General JournalWhen using special journals, a
general journal is still required for recording some types of
transactions
These include:Adjusting entriesClosing entriesReversing
entriesCorrecting entriesInfrequent transactions (that can not be
recorded in any of the special journals)Which journal would we
use?Issue of Shares for cashCash purchase of InventoriesPurchase of
Inventories on creditSale of inventory on creditSale of marketable
securites for cash6. Receipt of payment from customers account7.
Withdrawal of cash by owner8. Receipt of credit note from supplier
for defective goods
27
