Chapter 5, Problem 5.1BPR

(1) and (2)

To determine

General Journal

It is a chronological record of the transactions, showing an explanation of each transaction, the accounts affected, whether those accounts are increased or decreased, and by what amount. It has two columns i.e. Debit column and Credit column.

Special Journal

Special journal records a single kind of transactions that occurs frequently. For example: Revenue Journal is a special journal which records all revenue earned on account.

General ledger

It is the primary ledger, which contains all balance sheet and income statement accounts. For example: Cash Account, Equipment Accounts, and Rent Accounts etc.

Subsidiary ledger

A large number of individual accounts with a common characteristic can be grouped together in a separate ledger called subsidiary ledger. For example: Accounts Receivable subsidiary ledger or customer ledger.

Controlling Account

Each subsidiary ledger is represented in the general ledger by a summarizing account, called a controlling account. For example: Accounts Receivable Subsidiary ledger is represented in Accounts Receivable ledger.

To record: The transactions in General journal, Revenue journal, Accounts Receivable subsidiary ledger, and General ledger.

(3)a.

To determine

The sum of the balances of the customer accounts in the subsidiary ledger at 31^st January 2016.

b.

To determine

 The balance of the accounts receivable controlling account.

4.

To determine

To explain: The benefits of the computerized system over the manual system.