BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

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 receipts journal to the general ledger?

To determine

Indicate the steps followed in posting from the cash receipts journal to the general ledger.

Explanation

Cash Receipts Journal:  It is a special book where only cash receipts transactions that are received from customers, merchandise sales and service made in cash and collection of accounts receivable are recorded.

The following are the some examples of transactions that would be recorded in the Other Accounts credit column of the cash receipts journal:

  • • Cash received as interest on notes payable
  • • Interest revenue received from debtors
  • • Cash receipts from bank loans
  • • Cash receipts for capital investments

Steps followed in posting from the cash receipts 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 (CR) and the journal page number in the Posting Reference column of the ledger for each transaction.

In the cash receipts journal:

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

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

DIVIDEND POLICY Southeastern Steel Company (SSC) was formed 5 years ago to exploit a new continuous casting pro...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)