Concept explainers
Concept Introduction:
Generally, Companies uses the double entry accounting system to record the accounting transactions. Under double entry accounting system there are various types of journal uses for recording of transactions. There are various special types of journal used to record the repetative transactions such as sales journal, purchase journal, cash receipt journal and cash disbursement journal etc.
In sales journal, all transactions related to credit sales are recorded. Cash sales is recorded in cash receipt journal only.
In cash receipt journal, all types of cash receipts are recorded.
All transactions other than recorded in sales journal, purchase journal, cash recipt journal and cash dibursement journal are recorded in general journal.
Requirement 1:
To determine:
We have to total each column of cash payment journal.
Requirement 2:
To determine:
We have to open four column accounts in the accounts payable subsidiary ledger- accounts payable king company.
Requirement 3:
To determine:
We have to open four column ledger accounts.
Requirement 4:
To determine:
We have to balance the accounts payable account in the general ledger with the total of balances in the accounts payable subsidiary ledger.
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