Xacc 280 Week 4 Checkpoint

Topics: General ledger, Accounts receivable, Invoice Pages: 1 (335 words) Published: March 4, 2012
CheckPoint Week 4

November 3, 2012
Dr. Ed Walden
CheckPoint Week 4
There are four different special journals which are sales journal, purchase journal, cash receipt journal, and cash payment journal. All of the special journals are used to record data. The sales journal is used for one line entry with each sale. It reduces errors and saves time and is used when doing a credit sale. The cash receipt journal provides information on cash balances. This journal would be used for selling merchandise and obtaining cash. The purchase journal would be used to record any type of frequently recurring transactions. This is used when purchases are made. The cash payments journal is used to record all of the payments made through the company’s bank account. This would be used when the company is making any type of payment from their account. A subsidiary ledger is a group of accounts that have common characteristics. This ledger is used to free the general ledger from all the details regarding individual balances. The subsidiary ledger is in addition to the general ledger. A control account is considered to be the general ledger account. The control account summarizes the information in the subsidiary ledger. The general ledger will have the correct balance for all the financial statements. Accounts receivable subsidiary ledger and the accounts payable subsidiary ledger are the two general ledger accounts that could act as control accounts for the subsidiary ledger. Collecting transactional data of individual customers is what the accounts receivable subsidiary ledger does. The accounts payable subsidiary ledger will collect transactional data of the individual creditors. The advantages of using the ledgers are showing single account transactions that pertain to one customer or even one creditor, providing accurate information that is up-to-date, and they make the general ledger free of the excess details. These ledgers also help determine...
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