CHAPTER TWENTY SEVEN THE COMBINED JOURNAL 3 THE
CHAPTER TWENTY SEVEN THE COMBINED JOURNAL
3 THE COMBINED JOURNAL Chapter Outcomes: 1. Record transactions in a combined journal. 2. Total, prove, and rule the combined journal. 3. Post from the combined journal. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
4 The Combined Journal Special journals provide an efficient way of recording transactions. However, some small businesses prefer to use a single, multi-column journal known as the combined journal. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
5 Recording Transactions in the Combined Journal The combined journal is suitable for a business that has a limited number of entries each month. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
6 Posting From the Combined Journal During the month, the amounts in the Other Accounts section of the combined journal are posted individually to the General Ledger accounts listed. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
7 Posting From the Combined Journal (continued) As each amount is posted, the account number is written in the Posting Reference column of the journal. The abbreviation C and the journal page number are recorded in the ledger accounts to identify the source of the entry. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
8 Accounting Terminology • Combined journal • Posting reference C Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
9 Chapter Summary • Some small businesses use a combined journal. These businesses find it more convenient to use this format. • In the combined journal, special columns are provided for recording the types of transactions that occur most often. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
10 Chapter Summary (continued) • During the month, the amounts in the Other Accounts section are posted individually to the General Ledger. • The amounts in the Accounts Receivable section and the Accounts Payable section are posted individually to the subsidiary ledgers. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
11 Chapter Summary (continued) • At the end of the month, the money columns of the combined journal are pencil-footed. Then the equality of the debits and credits is proved. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
12 Chapter Summary (continued) • After the combined journal is totaled and ruled, the totals of the special columns are posted to the General Ledger. Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
13 Topic Quiz Answer the following true/false questions: 1. A combined journal should be used by businesses with a volume of entries each month. FALSE 2. A combined journal is designed to be easy to use. TRUE 3. A combined journal has standard money columns that cannot be changed. FALSE Mc. Graw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
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