General Journal
Book of Original Entry
Contents
Date Account Title Ref Debit Amount Credit Amount
mOnth/Yr day Dr
2022 Cr
Explanation
Sep 10 Cash GL1 10,000.00
Owner's Capital GL5 10,000.00
To record initial capital investment
General ledger
Book of Final Entry
Contents GL1
CASH
year year
Description/ Description/
Month Day Debit Month Day Credit
source Doc source Doc
SEP 10 GJ1 10,000.00
GL5
OWNER'S EQUITY/CAPITAL
year year
Month Day Description/ Debit Month Day Description/ Credit
source Doc source Doc
SEP 10 GJ1 10,000.00
sales journal
year year
Month Day Description/ Debit Month Day Description/ Credit
source Doc source Doc
20x1
april 7 SJ 1 15,000.00
accounts receivable
year year
Month Day Description/ Debit Month Day Description/ Credit
source Doc source Doc
20x1 SEP 10 GJ1 10,000.00
apr 7 SJ1 15,000.00
SALES JOURNAL
Dr. Accounts
SALES
Receivable
DATE SUPPLIER INVOICE Ref
Cr. Sales
NO
Revenue
A B C D E
2/3/20X1 XYZ Company 123 P 56,000.00
2/4/20X1 MNO Company 124 P 67,000.00
2/9/20X1 XYZ Company 125 P 88,000.00
2/15/20X1 MNO Company 126 P 55,000.00
144,000.00
AB
A
1
122,000.00
266,000.00
SUBSIDIARY LEDGER FOR XYZ COMPANY
DATE REF DEBIT CREDIT BALANCE
2/3/20X1 SJ 56,000.00 56,000.00
2/9/20X1 SJ 88,000.00 144,000.00
3/3/20X1 CRJ 56,000.00 88,000.00
SUBSIDIARY LEDGER FOR MNO COMPANY
DATE REF DEBIT CREDIT BALANCE
2/4/20X1 SJ 67,000.00 67,000.00
2/15/20X1 SJ 55,000.00 122,000.00
3/3/20X1 CRJ 67,000.00 55,000.00
A/R CONTROL
DATE REF DEBIT CREDIT BALANCE
FEBRUARY SJ 266,000.00 266,000.00
MARCH SJ 123,000.00 143,000.00
143,000.00
SUM OF FEBRUARY DEBITS 266,000.00
SUM OF MARCH CREDITS 123,000.00
SUM OF BALANCE XYZ AND MNO 143,000.00
SUM OF MARCH DEBITS 190,000.00
CASH RECEIPTS JOURNAL
Dr. Cost of Goods Dr. Sales
DATE Account Credited Ref Dr. Cash
Sold Cr. Inventory Discount
F A B C D E
45,000.00 3/3/20X1 XYZ Company P 54,880.00 1,120.00
55,000.00 3/10/20X1 MNO Company P 67,000.00
70,000.00
32,000.00
2
L
DR. Cost of
Cr. Sales Cr Acct Cr. Other
good Sold/ Cr,
Revenue Receivable Accounts
Inventory
F G H I J
- 56,000.00
7,000.00
Basic Steps in the Accounting Cycle
1. Analyzing business transactions and journalizing in the
general journal
2. Posting to the general Ledger
3. Trial Balance Preparation
4. Worksheet Preparation
5. Adjusting the books of Accounts
6. Preparing financial statements
7. Journalizing and postng closing entries
8. preparing Post Closing Trial Balance
9. Journalizing and posting reversing entries
accounting process
INPUT
TRANSACTIONS AND ECONOMIC EVENTS
Source documents
OFFICIAL RECEIPTS
SERVICE OR SALES INVOICES
PURCHASE INVOICES
CHECKS AND CHECK VOUCHERS
OTHER SOURCES
PROCESS OUTPUT
ANALYZING INCOME STATEMENTS
RECORDING BALANCE SHEET
CASH FLOW STATEMENT/ STATEMENT OF
CLASSIFYING
CHANGES IN EQUITY
SUMMARIZING INTERPRETATIONS
JOURNALIZE IN BOOKS OF ORIGINAL ENTRY POST IN THE BOOK OF FINAL ENTRY
GENERAL JOURNAL GENERAL LEDGER
SPECIAL JOURNAL (sales or purchase) SUBSIDIARY LEDGER - AR/
SPECIAL JOURNAL (cash receipts) SUBSIDIARY LEDGER - AP
SPECIAL JOURNAL (cash disbursements)
