Unformatted text preview: s of individual account balances.
3. Help locate errors in individual accounts by reducing the number of accounts
combined in one ledger and by using control accounts.
4. Make possible a division of labor in posting by having one employee post to the
general ledger and a different employee post to the subsidiary ledgers. ILLUSTRATION 1: Relationship between General and Subsidiary Ledgers Illustration 1 is based on the following transactions:
Sales and Collection Transactions
Collections on Account
Jan. 10 Aaron Co.
12 Branden Inc.
20 Caron Co. $ 6,000
======= Jan. 19 Aaron Co.
21 Branden Co.
29 Caron Co. $ 4,000
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the book of original entry where transactions and selected other events are initially
GENERAL JOURNAL: It consists of four parts :
1234- The accounts and the amount to be debited
The accounts and the amount to be credited
An explanation Special journals
special journals expedite the journalizing and posting process for frequently occurring
transactions. The most common special journals are: sales journals, purchases journal,
cash receipts journal, and cash payments journal. Posting:
It is the process of trasfering the essential facts and figuers from the book of original
entry to the ledger accounts .
The number in the posting reference coloumn serves two pourposes:
1- Indicate the ledger account number of account involved.
2- To indicate that the posting has been completed for the particular item. TRIAL BALANCE:
It is a list of accounts and their balances at a given time .
The primary pourpose of a trial balance is to prove the mathimatical equality of
debit and credit .
A trial balance also uncoveres errors in journalizing and posting in addition
it is useful in the preparat...
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