Journals:
Journals are the books where all the original entries of business transactions are recorded on basis of its occurrence order and date.
Sales Journal:
The journal where all the credit sales of merchandise are recorded is called a Sales Journal.
Cash Receipts Journal:
Cash receipts journal records all type cash receipts of a business organization like cash sales, collections from debtors, loans and borrowings etc.
A subsidiary ledger of accounts receivable shows the amount of money paid and owed by debtors for the transactions made on credit individually.
Schedule of Accounts Receivable:
A schedule of accounts receivable represents the overall amount of money owed by the debtors for credit transactions during a specified period.
To determine:
1. Preparation of sales journal and cash receipts journal. Journalize the transactions that should be recorded in the sales journal and cash receipts journal.
2. Prepare the general ledger accounts and accounts receivable subsidiary ledger accounts.
3. Verify the amounts that should be posted as individual amounts from the journals have been posted. Foot and crossfoot the journals and make the month-end postings.
4. Preparation of
5. Assume that the total for the schedule of accounts receivable does not equal the balance of the controlling account in the general ledger. Describe steps you would take to discover the error.
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Chapter 7 Solutions
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