Purchase journal Purchase journal refers to the journal that is used to record all purchases on account. In the purchase journal, all purchase transactions are recorded only when the business purchased the goods on account. For example, the business purchased cleaning supplies on account. General Ledger General ledger refers to the ledger that records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues and expenses. Each subsidiary ledger is represented in the general ledger by summarizing the account. Subsidiary ledger Subsidiary ledger refers to the ledger that provides the detailed information of the account already recorded in the general ledger such as accounts receivable subsidiary ledger and accounts payable subsidiary ledger. To identify: The postings to be done in (1) General ledger accounts or (2) Subsidiary ledger accounts or (3) No posting is required.
Purchase journal Purchase journal refers to the journal that is used to record all purchases on account. In the purchase journal, all purchase transactions are recorded only when the business purchased the goods on account. For example, the business purchased cleaning supplies on account. General Ledger General ledger refers to the ledger that records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues and expenses. Each subsidiary ledger is represented in the general ledger by summarizing the account. Subsidiary ledger Subsidiary ledger refers to the ledger that provides the detailed information of the account already recorded in the general ledger such as accounts receivable subsidiary ledger and accounts payable subsidiary ledger. To identify: The postings to be done in (1) General ledger accounts or (2) Subsidiary ledger accounts or (3) No posting is required.
Solution Summary: The author explains that purchase journal is used to record all purchases on account. General Ledger records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues and expenses.
Purchase journal refers to the journal that is used to record all purchases on account. In the purchase journal, all purchase transactions are recorded only when the business purchased the goods on account. For example, the business purchased cleaning supplies on account.
General Ledger
General ledger refers to the ledger that records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues and expenses. Each subsidiary ledger is represented in the general ledger by summarizing the account.
Subsidiary ledger
Subsidiary ledger refers to the ledger that provides the detailed information of the account already recorded in the general ledger such as accounts receivable subsidiary ledger and accounts payable subsidiary ledger.
To identify: The postings to be done in (1) General ledger accounts or (2) Subsidiary ledger accounts or (3) No posting is required.
Which of the following documents will only be used for internal purposes?
O Deposit Slip
Bill of Lading
Purchase Order
Purchase Requisition
A voucher is prepared before what transaction?
Paying
O Ordering
Receiving
O Requesting
Describe and use the purchase journal. What steps are followed in posting from the purchases journal to the accounts payable ledger?
The individual amounts in the "Accounts Payable" column of the purchases journal are posted to the
appropriate account in the
A. general ledger
B. general journal
C. accounts payable ledger
D. accounts receivable ledger