Books of Original Entry (原始分录簿) and Ledgers (分类帐).pptVIP

Books of Original Entry (原始分錄簿) and Ledgers (分類帳) References： Chapter 11-14, 19 A Introduction Books to record all the T accounts. The expansion of the business, transactions increase，the numbers of T accounts are numerous. Thus the T accounts are classified into 3 Ledgers and 7 Books (Books of Original Entry). B Books of Original Entry 1 Sales Journal ( Day Book) 2 Purchases Journal (Day Book) 3 Returns Inwards Journal (Day Book) 4 Returns Outwards Journal (Day Book) 5 Cash Book【Explain later】 6 Petty Cash Book【Explain later】 7 Journal【Explain later】 C Ledgers 3 kinds of ledgers： Sales ledger－records each debtor’s T A/C Purchases ledger－records each creditor’s T A/C General ledger －records the rest of the accounts, such as expenses, Fixed assets, capital, etc. D Sales Journal and Sales Ledger D1 Sales Journal Record all credit sales There is no debit items in “Sales A/C”, so the “Sales A/C” transforms to a statement(表), i.e, Sales Journal. Examples of Sales Journal： The credit sales transactions in January, 2008 of Green Co. are as follow： Jan 5, sold $500 goods on credit to Rabbit Co. and offered 1% trade discounts* to Rabbit Co. Jan 15, sold $100 goods on credit to Pepper Co. If Pepper Co. pays the debt within 1 month, Pepper can enjoy 2% cash discounts**。 Jan 28, sold $500 goods to Pump Co. and offered 1% trade discounts. If Pump Co. pays the debt within 1 weeks, Pump can enjoy 2% Cash discounts. You are required to prepare： The Sales Journal to record the above transaction. *Trade discount: offered to customers to attract large-quantity transactions. Directly deducted from the list price, no double entry is required. **Cash discounts: Encourage the early repayment of debts The entry is recorded at the time of repayment of debts. Sales Journal 2008 Particular Inv. No. $ Jan 5 Rabbit Co 495 15 Pepper Co 100 28 Pump Co 495 31 Transferred to sales A/C 1090 (in General Ledger) D2 Sales Ledger After recording each