Journals: Journals are prepared to record business transactions. There are two types of journals: Special Journals: Special journals record the recurring business tractions like sales, purchase, cash receipts and payments. Some special journals are as follows: Sales journal Sales Return Journal Purchase journal Purchase return journal Cash receipts journal Cash payment journal General Journal: All the business transactions which do not belong to special journals are recorded using General journal. Subsidiary Ledger: A Subsidiary Ledger is prepared for the one account of the general ledger. There may be several subsidiary ledgers of one general ledger. General ledger: A general ledger contains the summarized information taken from its subsidiary ledgers. The relation between subsidiary ledger and control accounts. And prepare journal entries for the given purchase and sales transactions.

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Chapter 7, Problem 1GLP

To determine

Concept Introduction:

Journals:

Journals are prepared to record business transactions. There are two types of journals:

Special Journals:
Special journals record the recurring business tractions like sales, purchase, cash receipts and payments. Some special journals are as follows:

Sales journal

Sales Return Journal

Purchase journal

Purchase return journal

Cash receipts journal

Cash payment journal

General Journal:
All the business transactions which do not belong to special journals are recorded using General journal.

Subsidiary Ledger:

A Subsidiary Ledger is prepared for the one account of the general ledger. There may be several subsidiary ledgers of one general ledger.

General ledger:

A general ledger contains the summarized information taken from its subsidiary ledgers.

The relation between subsidiary ledger and control accounts. And prepare journal entries for the given purchase and sales transactions.

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