Chapter 7, Problem 2PSB

To determine

Concept Introduction:

Sales Journal:

Sales journal is concerned with all the credit sales occurred during an accounting period.

Cash Receipt Journal:

The specific journal where all the cash inflows or received during the period is recorded is called a cash receipt journal.

Requirement 1:

To Prepare:

Prepare sales journal and cash receipts journal of Acorn Industries for the month of July..

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financial statement is known as General ledger.

Subsidiary Ledger:

It is the supporting ledger for preparing the general ledger that gives detailed information.

Requirement 2:

To Prepare:

Open all the general ledger accounts concerned with the transactions which occurred in the month of July and also prepare all the accounts receivable subsidiary ledger accounts?

To determine

Concept Introduction:

Journal:

The recording of financial transactions are known as Journal .

Requirement 3:

To Verify:

Verify that amounts that should be posted as individual amounts from the journals have been posted.

To determine

Concept Introduction:

Trial Balance:

The listing of all accounts in debits and credits is known as Trial balance.

Requirement 4:

To Prepare:

(a) Prepare a trial balance of the general ledger.

(b) Prove the accuracy of the subsidiary ledgers by preparing schedule of accounts receivable.