Show:
What's So Special?
Purchases/ Sales Journals
Cash Receipts Journal
Cash Payments Journal
Generally (Journal) Speaking
100
To make things easier and more efficient as the number of business transactions increase.
What is the primary reason for using special journals.
100
Only when merchandise is purchased on account.
When is the Purchases Journal used?
100
Always, always, always when the company receives payment for any reason.
What is the term for when you are to use the Cash Receipts Journal?
100
This is when an amount is entered in the Cash Credit column of the Cash Payments Journal when recording a payment.
What is always, always, always? Duh, again.
100
This is when there is no need to use General Journal entries because your business utilizes one or more Special Journals.
What is never, never, never?
200
When the use of special journals is required.
What is never ? (You may record all transactions using general journal entries if you choose).
200
Only when merchandise is sold on account.
When is the Sales Journal used?
200
This is when you are not to use the Cash Receipts Journal when the company receives cash for any reason.
What is never, never, never? (refer to the $100 question and answer) Duh.
200
The reason that understanding the Cash Payments Journal and the Cash Receipts Journal are very similar. *****Daily Double*****
What is because it is like a mirror image of the Cash Receipts Journal except with money (cash, checks, etc.) being paid out instead of being received?
200
The reason a customer sale on account can later require a General Journal entry.
What is when a customer refund or account allowance is necessary?
300
The circumstances where general journal entries are not necessary when using special journals. *****Daily Double*****
What is never? (Some transactions will always require a general journal entry).
300
Post the sales journal transaction to the accounts receivable (customer) ledger.
What is done immediately after recording a Sales Journal transaction?
300
This column always, always has a dollar amount recorded in it for every transaction. ***Daily Double***
What is the Cash Debit column?
300
The reason that the Cash Payments Journal tends to have more account designated columns and more recordings in the General column.
What is because there are many reasons for money to be paid out so there are many different accounts needed to record the transactions in?
300
This is when a General Journal entry is posted to a specific vendor or customer account after the journal entry is prepared.
What is immediately?
400
The frequency of posting most special journal totals to the general ledger accounts.
What is monthly?
400
Post the purchases journal transaction immediately to the accounts payable (vendor) ledger.
What is done immediately after recording a Purchases Journal transaction?
400
This is why the total of the General column of the Cash Receipts Journal cannot be posted to the General Ledger.
What is because there can be many different accounts to post?
400
The terms for adding the column totals in the Cash Payments Journal and checking to be sure that the debit totals equal the credit totals.
What is ruling and proving the journal totals?
400
The reason behind immediately posting specific customer and vendor accounts after recording a journal entry affecting their account.
What is so an accurate, up to date balance is showing in a cusomer's account in case they ask about their current balance?
500
The frequency of posting accounts receivable ledger (customer ledger) and accounts payable ledger (vendor ledger) amounts to the respective ledgers.
What is when recorded?
500
Because they each require only a limited number of columns and general ledger accounts to complete.
Why are the Sales and Purchases Journal relatively easier to complete?
500
The reason some accounts are chosen to have a specific column in the Cash Receipts Journal.
What are the most commonly used accounts when receiving cash (checks, etc.) for your business?
500
This is the circumstance when the column totals in the Cash Payments Journal are posted to the General Ledger accounts and any vendor or customer transactions are posted to thir individual accounts.
What is always, always, always?
500
The person who decides whether to use Special Journals and, if so, which ones to use.
What is you do? (as the financial manager or business owner).