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(a)
Special Journals: A special journal is prepared to record those transactions which are very frequent in the business. The special journals which are most commonly used are cash receipts, cash payments, sales and purchases journal.
Manual Accounting System: A manual accounting system refers to that system of accounting in which the steps of accounting like posting the transactions to the journal and ledger and preparing the financial statements are done manually.
Control Accounts: A control account is an account that is recorded in the general ledger and is a summary of all the records of the subsidiary ledger. The control account helps in verifying the balances of both ledgers of a particular account.
Subsidiary Accounts: These are the accounts which record the individual balances of those accounts which are also recorded in the general ledger. The subsidiary account provides the complete information of the account.
To explain: The special journals required and their headings.
(b)
To explain: The control and subsidiary accounts included in the company and the reasons for including it.
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Chapter 7 Solutions
Accounting Principles 12E WileyPLUS with Loose-Leaf Print Companion with WileyPLUS Leanring Space Card Set
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