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Week 7: Special Journals and Internal Control (Special Journals (MUST SEE…
Week 7: Special Journals and Internal Control
Special Journals (
MUST SEE THE PPT
)
Credit Sales of Inventory = Sales Journal (contains Account Receivable and Cost of Sales columns if using perpetual, if it is periodic - not contains COGS column)
Receipts = Cash Receipts Journal
Debit column: Cash, Discount Expense
Credit column: Account Receivable, Sales, Other Accounts
If perpetual: Debit and Credit column for COGS and Inventory
Credit Purchases of Inventory = Purchase Journal (contains Account Payable column)
Payments = Cash Payment Journal
Credit column: Cash, Discount Revenue
Debit column: Accounts Payable, Cash Purchases, Other Accounts
Posting rules
Anything with a column and a total (except for others) => Post at END of period to the GENERAL LEDGER account
Anything in the "other" column => Post immediately to the general ledger account
Anything to do with Account Receivable and Account Payable => Post immediately to SUBSIDIARY LEDGER
Anything in the general journal => post immediately
Subsidiary Ledgers (to provide detailed information)
Account Receivable (MUST SEE THE PPT FOR DETAILED EXAMPLES)
Account Payable (MUST SEE THE PPT FOR DETAILED EXAMPLES)
If there is account named account receivable or account payable
CONTROL
=> there is a subsidiary ledgers
Internal Control
(MUST READ THE PPT FOR MORE DETAILS)
Accounting information must be reliable
Reflect reality (represent faithfully)
Free from bias
Free from material error
Definition
of Internal Control (MUST SEE PPT FOR MORE DETAILS)
The purpose of internal control
safeguard
its resources against waste and inefficiency
encourage
compliance
(sự tuân thủ) with business policies and government regulation
to promote
reliability
of accounting data
Bank Reconciliation
Reconcile = compare and correct in order to make one consistent with other
MUST READ THE PPT FOR MORE DETAILS
gather the following data
cash receipts and payments records since that date
the bank statements received since the previous reconciliation
the previous bank reconciliation