Checkpoint 4 Xacc/280
- Submitted by: javcal06
- Views: 836
- Category: Other
- Date Submitted: 10/01/2011 02:40 PM
- Pages: 2
- Report this Essay
The advantages of the four different special journals and what they are used for. The sales journal has one-line entries and is a quick way to log items in. This is used when you have a credit sale. The cash receipt journal is used to provide information daily and weekly of the cash balance. The purchase journal is used when you have a transaction that takes place all the time. The cash payment journal is a record of all payment that the company makes from its own bank account.
The subsidiary journal is used for a group of accounts that have a common characteristic. This helps to free the general ledger used with individual balances. This would be considered a supplemental and an expansion of the general ledger. The control account is a general ledger that details subsidiary data in the ledger. This frees the general ledger of details and keeps the financial statements correct.
The two general ledger accounts act as a control account for the account receivable subsidiary ledger and the accounts payable subsidiary ledger they both collect data one for the individual creditors and the customer. The advantages of a subsidiary ledger are that it shows single transactions for the customer and the creditor. This does provide information on specific accounts. The important advantages to using special journals are that they save time journaling. Helps save time posting and eliminates detail from the general ledger. This just makes the detail of recording sales and transactions much easier for the business.
The subsidiary journal is used for a group of accounts that have a common characteristic. This helps to free the general ledger used with individual balances. This would be considered a supplemental and an expansion of the general ledger. The control account is a general ledger that details subsidiary data in the ledger. This frees the general ledger of details and keeps the financial statements correct.
The two general ledger accounts act as a control account for the account receivable subsidiary ledger and the accounts payable subsidiary ledger they both collect data one for the individual creditors and the customer. The advantages of a subsidiary ledger are that it shows single transactions for the customer and the creditor. This does provide information on specific accounts. The important advantages to using special journals are that they save time journaling. Helps save time posting and eliminates detail from the general ledger. This just makes the detail of recording sales and transactions much easier for the business.