Chapter 7, Problem 3BPSB

To determine

Purchases Journal:

It is the journal where all the purchase on accounts or credit purchase of merchandise, supplies, equipment etc. are recorded.

Cash Disbursements Journal:

The journal where all the cash payments are recorded is called a cash payment journal like cash purchases of equipment, supplies, inventories and payment to creditors.

General Journal:

The transactions which are not recorded in the special journals namely, sales journal, purchase journal, cash receipt journal, and cash disbursement journal are recorded in the general journal.

Accounts Payable Subsidiary Ledger:

It is a subsidiary ledger which shows the details of the credit transactions from a particular creditor. The details consist of amount of money paid to the creditor and owed to the creditor.

Schedule of Accounts Payable:

A schedule of accounts payable is a summary of accounts payable during a particular period. It shows the amount of money owed by the company to the creditors.

To determine:

1. Preparation of purchases journal, cash disbursements journal and general journal. Journalize the transactions that should be recorded in the purchases journal, cash disbursements journal and general journal.

2. Prepare the general ledger accounts and accounts payable 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 trial balance of Wiset Company for the month ended April and Schedule of accounts payable to prove the accuracy of the subsidiary ledgers.