Copyright 2006 Pearson Education Canada Inc 7 1

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Copyright 2006 Pearson Education Canada Inc. 7 -1

Copyright 2006 Pearson Education Canada Inc. 7 -1

Outline § Special Purpose Journals § The General Journal § How to Use Special

Outline § Special Purpose Journals § The General Journal § How to Use Special Purpose Journals § The Sales Journal, Purchases Journal, Cash Recipts Journal, and Cash Disbursement Journal § Subsidiary Ledgers/Control Accounts § The Guest Ledger & the City Ledger § The Cashier’s Daily Report & Other Frequently Used Journals § The Night Auditor § Computers and the Traditional Accounting Process Copyright 2006 Pearson Education Canada Inc. 7 -2

Special Purpose Journals § Frequently occurring transactions are journalized in a journal dedicated to

Special Purpose Journals § Frequently occurring transactions are journalized in a journal dedicated to that type of transaction § Special Journals are set up to meet the needs of each particular organization Copyright 2006 Pearson Education Canada Inc. 7 -3

Special Purpose Journals Copyright 2006 Pearson Education Canada Inc. 7 -4

Special Purpose Journals Copyright 2006 Pearson Education Canada Inc. 7 -4

The General Journal Copyright 2006 Pearson Education Canada Inc. 7 -5

The General Journal Copyright 2006 Pearson Education Canada Inc. 7 -5

How to use Special Purpose Journals Transactions are entered daily or weekly, in chronological

How to use Special Purpose Journals Transactions are entered daily or weekly, in chronological order They are self-balancing Dr = Cr Copyright 2006 Pearson Education Canada Inc. 7 -6

Sales Journal Accounts Receivable Rooms Sales Food Sales Beverage Sales Other income To record

Sales Journal Accounts Receivable Rooms Sales Food Sales Beverage Sales Other income To record sales for the week Copyright 2006 Pearson Education Canada Inc. 7 -7

Purchases Journal. Food Inventory Beverage Inventory Housekeeping Supplies Inventory Utilities Expense Equipment Accounts Payable

Purchases Journal. Food Inventory Beverage Inventory Housekeeping Supplies Inventory Utilities Expense Equipment Accounts Payable Copyright 2006 Pearson Education Canada Inc. 7 -8

Cash Receipts Journal. Cash Accounts Receivable Notes Payable Common Stock Copyright 2006 Pearson Education

Cash Receipts Journal. Cash Accounts Receivable Notes Payable Common Stock Copyright 2006 Pearson Education Canada Inc. 7 -9

Cash Disbursements Journal. Record all transactions involving money going out . Accounts Payable Discounts

Cash Disbursements Journal. Record all transactions involving money going out . Accounts Payable Discounts Housekeeping Supplies Equipment Cash . Copyright 2006 Pearson Education Canada Inc. 7 -10

Subsidiary Ledgers/Control Accounts. General Ledger accounts that control information on subsidiary ledgers Subsidiary Ledgers

Subsidiary Ledgers/Control Accounts. General Ledger accounts that control information on subsidiary ledgers Subsidiary Ledgers A/R SUBSIDIARY LEDGER A/P SUBSIDIARY LEDGER Copyright 2006 Pearson Education Canada Inc. 7 -11

Subsidiary Ledgers/Control Accounts Provide additional detail of control accounts found in the General Ledger

Subsidiary Ledgers/Control Accounts Provide additional detail of control accounts found in the General Ledger Control Accounts General Ledger accounts that control information on subsidiary ledgers A/R Subsidiary Ledger Provide detail for each customer account A/P Subsidiary Ledger Provides detail for each vendor account Copyright 2006 Pearson Education Canada Inc. 7 -12

Guest Ledger and City Ledger Guest Ledger all the folios of § Includes all

Guest Ledger and City Ledger Guest Ledger all the folios of § Includes all the folios § Includes guests who enjoy extended of guests who are still credit privileges with the hotel at the hotel § Many corporations have § Guests will pay their city ledger accounts bills before they leave § Credit card accounts are included the hotel Copyright 2006 Pearson Education Canada Inc. 7 -13

The Cashier’s Daily Report and Other Frequently Used Journals § Cashier’s Daily Report used

The Cashier’s Daily Report and Other Frequently Used Journals § Cashier’s Daily Report used to reconcile sales with receipts and provide the necessary cash sales information for recording in the cash receipts journal § Transfer Journal used to record transfers or charges between two guests or to transfer charges from one ledger to another § City Journal used by the front desk to record charges to be transferred to individual city ledger cards Copyright 2006 Pearson Education Canada Inc. 7 -14

The Night Auditor § Verifies that all guest charges and payments are § §

The Night Auditor § Verifies that all guest charges and payments are § § posted to clients’ accounts Prepares daily transcript Reconciles guest charges and credit card sales and posts to each client’s subsidiary ledger account Copyright 2006 Pearson Education Canada Inc. 7 -15

Computers and the Traditional Accounting Process § Computers expedite the accounting process § Point

Computers and the Traditional Accounting Process § Computers expedite the accounting process § Point of sale computers enable sales clerks to record transactions at the very moment of the sale § Managers must still understand the accounting process! Copyright 2006 Pearson Education Canada Inc. 7 -16