Ch. 6: Special Journals and Controls Flashcards Preview

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Flashcards in Ch. 6: Special Journals and Controls Deck (18)
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1

Cash Payments Journal

A journal that records all transactions involving the payment of cash regardless of the reason.

2

Cash Receipts Journal

A journal that records all transactions involving the receipt of cash, regardless of the source.

3

General Journal

A journal that is used to record transactions that do not belong in the other special journals.

4

Purchases Journal

A journal that records all purchases on credit.

5

Sales Journal

A journal that records all sales of goods and services on credit.

6

Special Journal

A book of original entry in which all transactions of a similar nature, such as sales on credit or purchases on credit, are recorded.

7

Accounts Payable Control Account

A general ledger account that mirrors the value of the subsidiary accounts payable ledger. The purpose of this control account is to provide a balance that is equal to the sum of the balances in the individual subsidiary ledger accounts.

8

Accounts Payable Ledger

A subsidiary ledger that contains various creditor accounts. All credit transactions from the purchases journal and the cash payments journal, as well as certain transactions from the general journal, are posted daily to the various creditor accounts in the accounts payable ledger.

9

Accounts Receivable Control Account

A general ledger account that mirrors the value of the subsidiary accounts receivable ledger. The purpose of this control account is to provide a balance that is equal to the sum of the balances in the individual subsidiary ledger accounts.

10

Accounts Receivable Ledger

A subsidiary ledger that contains individual customer accounts. All transactions involving customers are posted daily from either the sales or the cash receipts journal and under certain circumstances from the general journal to the individual customer accounts in the accounts receivable ledger.

11

Bracket Entry

An entry recorded in a two-column general journal that represents the need to post to a subsidiary ledger account as well as to the corresponding control account in the general ledger.

12

Control Account

An account that presents a summary of a group of accounts found in a subsidiary ledger. The accounts receivable and the accounts payable accounts in the general ledger are examples of control accounts.

13

Purchases Returns and Allowances Journal

A journal used by the seller of goods to acknowledge the receipt of a credit memorandum from the seller authorizing the return of goods and the reduction or elimination of the buyer’s obligation to the seller.

14

Sales Returns and Allowances Journal

A journal used by the seller of goods to record the issuance of a credit memorandum, which serves as evidence of the return of merchandise to the seller, giving the buyer credit for the return.

15

Schedule of Accounts Payable

A listing of the balances in the subsidiary accounts payable ledger. The total of this schedule must agree with the balance in the control account in the general ledger.

16

Schedule of Accounts Receivable

A listing of the balances in the subsidiary accounts receivable ledger. The total of this schedule must agree with the balance in the control account in the general ledger.

17

Subsidiary Ledger

A detailed record of individual customer or creditor accounts which, when totaled, equal the control account in the general ledger. A subsidiary ledger can be set up for any group of accounts for which detailed information is needed but does not have to be shown in the general ledger other than in the form of a control account.

18

Summary Entry

At the end of the month, it is necessary to summarize the special journals. This process involves footing the money columns of each multiple column journal, cross-footing the columns to verify that debit totals equal credit totals, and finally, posting those columns that need to be posted. The summary entry involves the posting of totals from the multiple column journals, and the posting of totals of the single column journals as well.