Chapter 7, Problem P7.26APGA

To determine

1.

Often Four column accounts are prepared with shows the net amount of debit and credit balance at the end of each transaction.

To prepare:

The four column given ledgers.

To determine

2.

When a business sells goods on credit, an account receivable subsidiary ledger is prepared to show all the sales, sales returns, adjustments and payment received from each customer. Similarly an accounts payable journal reflects all the transactions and payment done and balances due to each supplier of the goods.

To prepare:

The given subsidiary accounts

To determine

3.

The sales journal is the special journal which records all the sales made by the company on credit. Similarly, purchases journal records only the credit purchases. A cash receipt journal is used to record all the cash collections by the business. Similarly, the cash payment journal is used to record all the cash disbursals by the business. The general journal is used to record all the remaining transactions when these four special journals are prepared.

To prepare:

The given journals

To determine

6.

Trial balance is the statement usually prepared at the end of the accounting period and it is prepared to assist the preparation of financial statements. Trial balance contains the balance of all ledger accounts separated into debit and credit balances.

To prepare:

The trial balance as on given date