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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

What steps are followed in posting from the cash payments journal to the general ledger?

To determine

Indicate the steps that are followed in posting from the cash payments journal to the general ledger.

Explanation

Cash payments journal: Cash payments journal refers to the journal that is used to record the all transaction which is involve the cash payments. For example, the business paid cash to employees (salary paid to employees).

Cash payments journal is used to record merchandise purchases made in cash and payments of accounts payable. It also records all other cash payments to various purposes. To include all these transactions, companies use multi-column cash payments journal.

Indicate the steps that are followed in posting from the cash payment journal to the general ledger:

In the general ledger account:

Step 1: Enter the date of the transaction in the Date column.

Step 2: Enter the debit amount and the credit amount in the Debit and Credit columns respectively.

Step 3: Compute the ending balance and enter the new balance in the respective debit and credit columns.

Step 4: Enter the initials (CP) and the journal page number in the Posting Reference column of the ledger for each transaction.

In the cash payment journal:

Step 5: Enter the ledger account number in the Posting Reference column for each posted accounts...

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