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(a)
Cash Receipts Journal
Cash receipts journal is used to record merchandise sales and service made in cash and collection of
Control account
It is a general ledger account which summarizes the entire details about the subsidiary ledger data. The purpose of using control account is that to maintain the general ledger free from many details and provide clean and correct balances to be used in the financial statements.
Subsidiary Ledger
Subsidiary ledger refers to the individual accounts, the summary of which is merged into the control account. It relives the burden on the general ledger and makes the posting easier and quicker. The most common subsidiary ledgers are:
- 1. Accounts Receivable subsidiary ledger.
- 2. Accounts Payable subsidiary ledger.
To journalize: the transactions in a cash receipt journal.
(b)
To prepare: the beginning balance and
(c)
To Prove: the agreement of control account and subsidiary account balances.
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Chapter J Solutions
Financial Accounting
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