Chapter 7, Problem 3PSB

To determine

Concept Introduction:

General Journal:

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

Purchase Journal:

The journal where all the credit purchases are recorded is termed as purchase journal.

Cash Payment Journal:

Cash payment journal shows all the cash payment made by the business organization.

Requirement 1:

To Prepare:

Prepare general journal, purchase journal, and cash payments journal.

To determine

Concept Introduction:

General Ledger:

The grouping of similar nature transactions of a business that helps to prepare the financialstatement 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 April and also prepare all the accounts payable 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 payable