POSTING THE CASH RECEIPTS

POSTING THE CASH RECEIPTS - total to this column to...

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POSTING THE CASH RECEIPTS JOURNAL Posting a multi-column journal involves the following steps. 1. All column totals except for the Other Accounts total are posted once at the end of the month to the account title(s) specified in the column heading (such as Cash or Accounts Receivable). Account numbers are entered below the column totals to show that they have been posted. Cash is posted to account No. 101, accounts receivable to account No. 112, merchandise inventory to account No. 120, sales to account No. 401, sales discounts to account No. 414, and cost of goods sold to account No. 505. 2. The individual amounts comprising the Other Accounts total are posted separately to the general ledger accounts specified in the Account Credited column. See, for example, the credit posting to Common Stock. The total amount of this column is not posted. The symbol (X) is inserted below the
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Unformatted text preview: total to this column to indicate that the amount has not been posted. 3. The individual amounts in a column, posted in total to a control account (Accounts Receivable, in this case), are posted daily to the subsidiary ledger account specified in the Account Credited column. See, for example, the credit posting of $10,600 to Abbot Sisters. The symbol CR is used in both the subsidiary and general ledgers to identify postings from the cash receipts journal. PROVING THE LEDGERS After posting of the cash receipts journal is completed, it is necessary to prove the ledgers. As shown in Illustration G-10 (on the next page), the general ledger totals are in agreement. Also, the sum of the subsidary ledger balances equals the control account balance....
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.

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