recording transactions using a general journal
DESCRIPTION
Recording Transactions Using a General Journal. General Journal. General Journal A journal where all types of entries can be recorded. There are only two amount columns and used when the business cannot attribute the account to any of the special journals. . Purchases Returns and Allowances. - PowerPoint PPT PresentationTRANSCRIPT
Recording Transactions Using a
General Journal
General Journal
General Journal A journal where all types of entries can
be recorded.There are only two amount columns and
used when the business cannot attribute the account to any of the special journals.
Purchases Returns and Allowances
When a customer is unsatisfied with merchandise, they are typically allowed to return part or all of their merchandise.
This type of transaction is a Purchases Return.
If the product is still usable or of lesser quality the vendor may offer a decrease in the account payable.
This type of transaction is a Purchase Allowance
A debit memorandum is a document the customer creates to identify the return or allowances.
DEBIT MEMORANDUM FOR PURCHASES RETURNS AND ALLOWANCES
Lesson 18-4, page 471
normal balance
143.00
JOURNALIZING PURCHASES RETURNS AND ALLOWANCES
March 8. Returned merchandise to Second Round, Inc. $143.00, covering Purchase Invoice No. 230. Debit memorandum No. 78.
Accounts AffectedAccounts PayablePurchases Returns and Allowances
Entered Debit side Credit side
Change
Increased Increased
ClassificationLiabilityContra cost
normal balance143.00
normal balance
143.00
Bal. 820.00
Second Round, Inc.
ACCOUNTS PAYABLE LEDGERGENERAL LEDGER
Accounts Payable
Purchases Returns and Allowances
Lesson 18-1, page 472
(New Bal. 677.00)
2. Write the account title and vendor name in the Account Title column.
JOURNALIZING PURCHASES RETURNS AND ALLOWANCES
Lesson 18-4, page 472
6
1
4 5
2
3. Place a diagonal line in the Post. Ref. column.
1. Write the date.
4. Write the debit memorandum number.5. Write the debit amount.6. Write the account title.7. Write the credit amount.
3
7
316.00normal balance
JOURNALIZING BUYING SUPPLIES ON ACCOUNT
Because supplies are not merchandise, they would not be recorded in the Purchase Journal, use the General Journal. - March 9. Bought supplies on account from Winter Supplies, $316.00. Memorandum No. 26.
Accounts AffectedSuppliesAccounts Payable
Entered Debit side Credit side
Change
Increased Increased
ClassificationAssetLiability
normal balance316.00
normal balance
316.00
Winter Supplies
ACCOUNTS PAYABLE LEDGERGENERAL LEDGER
Supplies
Accounts Payable
JOURNALIZING BUYING SUPPLIES ON ACCOUNT
Lesson 18-4, page 473
2. Write the account title. 3
6
14
5
2
3. Write the memorandum number.
1. Write the date.
4. Write the debit amount.5. Write the account title and vendor name in the
Account Title column.6. Place a diagonal line in the Post. Ref. column. 7. Write the credit amount.
3
7
2. Journal Page Number
POSTING FROM A GENERAL JOURNAL
Lesson 18-4, page 474
3. Credit
1. Date
4. Account Balance5. Account Numbers
5
4
4
2
1
3