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Appendix C
Special Journals and Subsidiary Ledgers
Subsidiary Ledger
• Contains a large number of individual accounts with a common characteristic
• Provides detail for a Controlling Account in the General Ledger (the primary ledger)
Controlling Account
• Summarizing account in the General Ledger
• Examples:– Accounts Receivable (Customers ledger)
• Made up of individual account balances due from customer
– Accounts Payable (Creditors ledger)• Made up of individual account balances owed to
vendors
Accounts Receivable Ledger
• Maintains separate account for each customer
• Keeps track of:
– credit extended to customer
– payments received from customer
– Balance due from customer
• Total of all customer accounts in Accounts Receivable Ledger should equal balance of Accounts Receivable in the General Ledger
Accounts Payable Ledger
• Maintains separate account for each vendor
• Keeps track of:
– credit extended by vendor
– payments made to vendor
– Balance owed to vendor
• Total of all vendor accounts in Accounts Payable Ledger should equal balance of Accounts Payable in the General Ledger
Special Journal
• Used when a business has a large number of similar transactions
Common types of Special Journals
1) Cash Payments Journal
2) Cash Receipts Journal
3) Revenue Journal
4) Purchases Journal
Cash Payments Journal
• Used to record all cash payments
• Transactions will have a credit to Cash
• Examples of transactions:– Paying expenses– Paying amounts owed to vendors
Cash Receipts Journal
• Used to record all cash receipts
• Transactions will have a debit to Cash
• Examples of transactions– Providing services for cash– Receiving cash from customers on account
Revenue Journal
• Used to record services provided on account
• Transactions will have a debit to Accounts Receivable and a Credit to Revenue
Purchases Journal
• Used to record purchases on account
• Transactions will have a credit to Accounts payable
• Examples of transactions– Purchase of supplies on credit– Purchase of equipment on credit
General Journal
• Used to record entries that don’t fit into special journals
• Examples of transactions– Adjusting entries– Closing entries– Special transactions
Revenue Journal .
Invoice Post Accts. Rec. Dr.
Date No. Account Debited Ref Fees Earned Cr.
Customer name enter
check
mark
when
posted
to A/R
Ledger
post total of column
as a Dr. to A/R and
a Cr. to Fees Earned
Revenue Journal Example
Nov. 1 Issued Invoice #1 to Sandoval Company for services performed, $750.
Revenue Journal Page 13
Invoice Post Accts. Rec. Dr.
Date No. Account Debited Ref Fees Earned Cr.
Nov. 1 1 Sandoval Co. 750
Accounts Receivable Subsidiary Ledger .
Customer Name: Sandoval Company
Post
Date Item Ref Dr. Cr. Balance
Nov 1 750 750
Cash Receipts Journal .
Other Accounts Post Accounts Receivable Cash
Date Account Credited Ref Cr. Cr. Dr. For receipt of payments from customers:
Customer name enter amount amount
check mark when posted to A/R Ledger
Post: 1) Transaction amount to Accounts Receivable Ledger 2) Total of Accounts Receivable column as a Cr. To
Accounts Receivable in the General Ledger 3) Total of Cash column as a Dr. to Cash in the General
Ledger
Cash Receipts Journal .
Other Accounts Post Accounts Receivable Cash
Date Account Credited Ref Cr. Cr. Dr. For receipt of cash from revenue:
Revenue revenue amount amount acct #
Post: 1) Transaction amount to revenue account in the General
Ledger 2) Total of Accounts Receivable column as a Cr. To
Accounts Receivable in the General Ledger 3) Total of Cash column as a Dr. to Cash in the General
Ledger
Cash Receipts Journal Example
Nov. 9 Received $500 from Sandoval Co. on account
Cash Receipts Journal Page 27 .
Other Accounts Post Accounts Receivable Cash
Date Account Credited Ref Cr. Cr. Dr.Nov. 8 Sandoval Co. 500 500
Accounts Receivable Subsidiary Ledger .
Customer Name: Sandoval Company
Post
Date Item Ref Dr. Cr. Balance
Nov 1 750 750
8 500
Purchases Journal .
Accounts Other Post Payable Supplies Accounts Post
Date Account Credited Ref Cr. Dr. Dr. Ref. Amount Vendor name enter * **
check mark when posted to A/P Ledger
* Every transaction will have an amount in the Accounts Payable column.
Individual transaction amounts will be posted to the Accounts Payable Ledger.The total of this column will be posted as a credit to Accounts payable in the General Ledger
** An amount is entered in this column if the purchase is for supplies, and the total of this column is posted to the Supplies account in the General Ledger.
Purchases Journal .
Accounts Other Post Payable Supplies Accounts Post
Date Account Credited Ref Cr. Dr. Dr. Ref. Amount Vendor name enter * ** ***
check mark when posted to A/P Ledger
* If the purchase is for something other than Supplies, write in the name of the
account (ex.: Equipment)
** Enter the account # of the account to show that the amount is posted here.
*** Post the amount to the General Ledger account
Accounts Payable Subsidiary Ledger .
Vendor Name:
Post
Date Item Ref Dr. Cr. Balance
Purchases journal transaction
Nov. 5 Purchased supplies on account from Walsh, Inc., $85
Purchases Journal Page 55
Accounts Other Post Payable Supplies Accounts Post
Date Account Credited Ref Cr. Dr. Dr. Ref. AmountNov. 5 Walsh, Inc 85 85
Accounts Payable Subsidiary Ledger .
Vendor Name: Walsh, Inc.
Post
Date Item Ref Dr. Cr. Balance
Nov. 5 85 85
Cash Payments Journal .
Other Accounts Post Accounts Payable
CashDate Account Debited Ref Dr. Dr. Cr. .
For payments made to vendors: Vendor name enter amount
amount check
mark when posted to A/R Ledger
Post: 1) Transaction amount to Accounts Payable Ledger 2) Total of Accounts Payable column as a Dr. to Accounts
Payable in the General Ledger 3) Total of Cash column as a Cr. to Cash in the General
Ledger
Cash Payments Journal .
Other Accounts
Post Accounts Payable Cash
Date Account Debited Ref Dr. Dr. Cr. .
For payment of cash for rent expense, utilities expense, etc.:
Name of account acct # amount amount
Post:
1) Transaction amount to account in the General Ledger
2) Total of Cash column as a Cr. to Cash in the General Ledger
Cash Payments example
Nov. 15 Paid $85 to Walsh, Inc. on account
Cash Payments Journal Page 6 .
Other Accounts Post Accounts Payable
CashDate Account Debited Ref Dr. Dr. Cr. Nov 15 Walsh, Inc. 85 85
Accounts Payable Subsidiary Ledger .
Vendor Name: Walsh, Inc.
Post
Date Item Ref Dr. Cr. Balance
Nov. 5 85 85
15 85
