General Ledger Accounting

Procedures
Closing
Entries

Source
Document
Journal

Financial
Statements,
Reports

Ledger

Adjusted
Trial
Balance

Trial
Balance
Adjusting
Entries

Source Documents

Examples:
sales order, Bill of Lading (shipping notice), sales invoice
Purchase requisition, purchase order, receiving report,
vendor invoice, check
Contract, time card, check

Source Document Journal

Journal: Book of original entry

Transaction analysis (debit, credit what?)

General journal vs. Special journals

Efficiency

Typical Special Journals:

Sales
Cash Receipts
Cash Payments
Purchases
Payroll

General Journal
WAREN SPORTS SUPPLY
GENERAL JOURNAL
December, 2005

DATE

Dec. 22

ACCT.
NO.

10300
10200

EXPLANATION
1
Allowance for doubtful accounts
Accounts receivable

POST

DEBIT

P
P

2,900.00

P
P
P
P

300.00
1,025.00

CREDIT

2,900.00

To write off uncollectible Stevenson

RK
College account

Dec. 26

10210
10900
10800
30900

2
Accounts receivable from employees
Accumulated depreciation
Fixed assets
Gain/loss on sale of fixed assets
To record sale of bookshelves to employee

1,025.00
300.00

SALES
JOURNAL

Date

Customer

DECEMBER

Inv. or

Subs.

Subs.

Cr. Memo

Acct.

Post

Number

No.

Debit

Credit

Acct. Rec.

Sales Returns

Sales

G/L 10200

G/L 30200

G/L 30100

Dec.

2 Rosemont University

727

406

4,174.00

4,174.00

Dec.

7 Clayborn University

728

407

7,252.00

7,252.00

Dec.

9 E. Wisconsin University

729

410

21,872.00

21,872.00

Dec.

13 Branch College

730

408

1,656.00

1,656.00

Dec.

19 Univ. of S. Iowa

731

409

17,931.00

17,931.00

Dec.

23 E. Wisconsin University

CM 42

410

(3,480.00)

Dec.

23 Clayborn University

732

407

11,046.60

3,480.00
11,046.60

-______________ Monthly totals

60,451.60
=

3,480.00

=
P

63,931.60
=

PURCHASES JOURNAL

DECEMBER

Vendor Debit

Date

Vendor

Credit

Invoice

Purchases

No.

G/L 30500
36,115.00

Other G/L
Acc#

Dec.

5 Velocity Sporting Goods

33965

Dec.

12 Chicago Office Supply

2344

Dec.

22 Velocity Sporting Goods

34719

Dec.

26 Chicago Office Supply

2378

40300

Dec.

30 Chicago Office Supply

2423

10800

======
P

Subs. A/C#

Amount
36,115.00

Purch. Ret.
Post

G/L 30600
P

253

7,367.00

252

18,030.00

559.15

253

559.15

4,558.00

253

4,558.00

7,367.00

18,030.00

54,145.00

Post

252
10800

----------Monthly totals

Amount

A/P - G/L 20100

----------12,484.15
======

----------66,629.15
======
P

POST Source
Document to
ONE AND
ONLY ONE
Journal:

Source
Document
________
________
________

Sales journal: Credit Sales &

Returns
Cash Receipts journal: any cash
receipt (Sales, AR, Other)
Purchase journal: Credit purchases
of inventory, supplies, PPE
Cash Payments journal: any Cash
Payment except for Payroll
Payroll journal: any paycheck

General journal

Source DocumentJournals

General Ledger
Ledger:

account

Separate record for each

Cash, Accounts Receivable, Sales, Cost of

Goods Sold
Balance Sheet/ Income Statement Order
Posting:

transferring data from

journal to ledger

Sample Ledger Cards

10100 - CASH
Oct.
1 Balance Forward
Oct.
31
Oct.
31
Oct.
31 Net Wages and Salary
Oct.
31 Bank Service Charge
Nov.
30
Nov.
30
Nov.
30 Net Wages and Salary
Nov.
30 Bank Service Charge
Dec.
31
Dec.
31
Dec.
31 Net Wages and Salary
Dec.
31 Bank Service Charge

Journal

10200 - ACCOUNTS RECEIVABLE

Oct.

CR
CD
PR
G
CR
CD
PR
G
CR
CD
PR
G

Debit

Debit
Balance
44,467.35

Credit

110,395.64
98,364.18
10,320.87
25.00

46,152.94

44,110.43
10,801.39
21.00

73,333.68

103,833.83
11,712.27
27.50

89,858.11

82,113.56

132,098.03

Journal

Debit

Credit

1 Balance Forward

Debit

Ctrl

Balance

Init

49,451.00

NF

74,369.00

61,796.00

NF

24,005.00

NF

47,428.00

NF

Oct.

31

86,714.00

Oct.

31

CR

Nov.

30

Nov.

30

CR

75,054.00

Dec.

22

2,900.00

Dec.

31

Dec.

31

CR

37,263.00

60,451.60
34,128.60

Posting: Journal to Ledger

SALES
JOURNAL

Date
Customer
Dec.
2 Rosemont University
Dec.
7 Clayborn University
Dec.
9 E. Wisconsin University
Dec. 13 Branch College
Dec. 19 Univ. of S. Iowa
Dec.
Dec.

23 E. Wisconsin University
23 Clayborn University

DECEMBER

Inv. or
Cr. Memo
Number
727
728
729
730
731

Subs.
Acct.
No.
406
407
410
408
409

Subs.
Post

CM 42
732

410
407

P
P

P
P
P
P
P

Debit
Acct. Rec.
Sales Returns
G/L 10200
G/L 30200
4,174.00
7,252.00
21,872.00
1,656.00
17,931.00
(3,480.00)
11,046.60
_____________
_
60,451.60
=
=
P

Monthly totals

Credit
Sales
G/L 30100
4,174.00
7,252.00
21,872.00
1,656.00
17,931.00

3,480.00
11,046.60

3,480.00

63,931.60
=

General Ledger
30100 - SALES
Oct.

Journal

Debit

Credit

1 Balance Forward

Balance
1,326,865.00

Oct.

31 Credit Sales

86,714.00

Oct.

31 Cash Sales

CR

36,607.00

Nov.

30 Credit Sales

60,277.00

Nov.

30 Cash Sales

CR

7,767.00

Dec.

31 Credit Sales

63,931.60

Dec.

31 Cash Sales

CR

21,437.00

Dec.

31

1,603,598.60

1,450,186.00
1,518,230.00
1,603,598.60
0.00

Posting: Journal to Ledger

SALES
JOURNAL

Date
Customer
Dec.
2 Rosemont University
Dec.
7 Clayborn University
Dec.
9 E. Wisconsin University
Dec. 13 Branch College
Dec. 19 Univ. of S. Iowa
Dec.
Dec.

DECEMBER

Inv. or
Cr. Memo
Number
727
728
729
730
731

Subs.
Acct.
No.
406
407
410
408
409

Subs.
Post

CM 42
732

410
407

P
P

23 E. Wisconsin University
23 Clayborn University

P
P
P
P
P

Debit
Acct. Rec.
Sales Returns
G/L 10200
G/L 30200
4,174.00
7,252.00
21,872.00
1,656.00
17,931.00
(3,480.00)
11,046.60
_____________
_
60,451.60
=
=
P

Monthly totals

Credit
Sales
G/L 30100
4,174.00
7,252.00
21,872.00
1,656.00
17,931.00

3,480.00
11,046.60

3,480.00

63,931.60
=

General Ledger
10200 - ACCOUNTS RECEIVABLE
Oct.

Journal

Debit

Credit

1 Balance Forward

Debit

Ctrl

Balance

Init

49,451.00

NF

74,369.00

61,796.00

NF

24,005.00

NF

47,428.00

NF

Oct.

31

86,714.00

Oct.

31

CR

Nov.

30

Nov.

30

CR

75,054.00

Dec.

22

2,900.00

Dec.

31

Dec.

31

CR

37,263.00

60,451.60
34,128.60

WAREN SPORTS SUPPLY

GENERAL JOURNAL
December, 2005

DATE

Dec. 22

ACCT.
NO.

EXPLANATION

10300
10200

1
Allowance for doubtful accounts
Accounts receivable

POST

P
P

DEBIT

CREDIT

2,900.00
2,900.00

To write off uncollectible Stevenson

RK
College account

Dec. 26

2
10210 Accounts receivable from employees
P
- ALLOWANCE
FOR
10900 10300
Accumulated
depreciation
P
DOUBTFUL
ACCOUNTS
Journal
10800
Fixed assets
P
1 Balance
Forward
30900 Oct. Gain/loss
on sale
of fixed assets
P
Dec.
22
G
To record sale of bookshelves to employee

10200 - ACCOUNTS RECEIVABLE

Oct.

Journal

300.00
1,025.00
Debit

Credit
1,025.00
300.00

Credit
Balance
1,750.81

2,900.00

Debit

Credit

1 Balance Forward

Debit

Ctrl

Balance

Init

49,451.00

NF

74,369.00

61,796.00

NF

24,005.00

NF

47,428.00

NF

Oct.

31

86,714.00

Oct.

31

CR

Nov.

30

Nov.

30

CR

75,054.00

Dec.

22

2,900.00

Dec.

31

Dec.

31

CR

37,263.00

60,451.60
34,128.60

12

General Ledger : Subsidiary

and Control
Control

Accounts =GL ACCOUNT

Aggregate
Column total posting from journals
Subsidiary

Ledger

Detail
AR, AP, Employee, Fixed Assets
Line item posting from journals
Sum of the subsidiary (all records) =
Control

SALES
JOURNAL

Date
Customer
Dec.
2 Rosemont University
Dec.
7 Clayborn University
Dec.
9 E. Wisconsin University
Dec. 13 Branch College
Dec. 19 Univ. of S. Iowa
Dec.
Dec.

23 E. Wisconsin University
23 Clayborn University

406

DECEMBER

Inv. or
Cr. Memo
Number
727
728
729
730
731

Subs.
Acct.
No.
406
407
410
408
409

Subs.
Post

CM 42
732

410
407

P
P

P
P
P
P
P

ROSEMONT UNIVERSITY

Monthly
121 totals
E. Front

Louisville, Kentucky 40202

DATE
Description
Oct.
1 Balance Forward
Oct.
6 Invoice # 722
Oct.
14 Payment # 722
Nov.
7 Invoice # 724
Nov. 17 Payment # 724
Dec.
2 Invoice # 727
Dec.
9 Payment #727

Debit

Debit
Acct. Rec.
Sales Returns
G/L 10200
G/L 30200
4,174.00
7,252.00
21,872.00
1,656.00
17,931.00
(3,480.00)
11,046.60
_____________
_
60,451.60
=CREDIT LIMIT:
=
P
Credit

29,018.00

29,018.00
2,460.00
2,460.00
4,174.00

CLAYBORN UNIVERSITY
13210 S. Upton
Logansport, Indiana 46947
DATE
Description
Oct.
1 Balance Forward
Dec.
7 Invoice # 728
Dec. 15 Payment # 728
Dec. 23 Invoice # 732
Dec. 29 Payment # 732

4,174.00

Credit
Sales
G/L 30100
4,174.00
7,252.00
21,872.00
1,656.00
17,931.00

3,480.00
11,046.60

3,480.00

63,931.60

=
$125,000
P
Balance
0.00
29,018.00
0.00
2,460.00
0.00
4,174.00
0.00

Post
Journal
Lines
to
Subsidi
ary

407

Debit

CREDIT LIMIT:
Credit

7,252.00
7,252.00
11,046.60
11,046.60

$125,000
Balance
0.00
7,252.00
0.00
11,046.60
0.00

14

Posting: Journal to Ledger

SALES
JOURNAL

Date
Customer
Dec.
2 Rosemont University
Dec.
7 Clayborn University
Dec.
9 E. Wisconsin University
Dec. 13 Branch College
Dec. 19 Univ. of S. Iowa
Dec.
Dec.

DECEMBER

Inv. or
Cr. Memo
Number
727
728
729
730
731

Subs.
Acct.
No.
406
407
410
408
409

Subs.
Post

CM 42
732

410
407

P
P

23 E. Wisconsin University
23 Clayborn University

P
P
P
P
P

Debit
Acct. Rec.
Sales Returns
G/L 10200
G/L 30200
4,174.00
7,252.00
21,872.00
1,656.00
17,931.00
(3,480.00)
11,046.60
_____________
_
60,451.60
=
=
P

Monthly totals

Credit
Sales
G/L 30100
4,174.00
7,252.00
21,872.00
1,656.00
17,931.00

3,480.00
11,046.60

3,480.00

63,931.60
=

General Ledger
10200 - ACCOUNTS RECEIVABLE
Oct.

Journal

Debit

Credit

1 Balance Forward

Debit

Ctrl

Balance

Init

49,451.00

NF

74,369.00

61,796.00

NF

24,005.00

NF

47,428.00

NF

Oct.

31

86,714.00

Oct.

31

CR

Nov.

30

Nov.

30

CR

75,054.00

Dec.

22

2,900.00

Dec.

31

Dec.

31

CR

37,263.00

60,451.60
34,128.60

PURCHASES
JOURNAL

DECEMBER
Vendo
r
Debit

Date

Vendor

Credit

Invoic
e

Purchases

No.

G/L 30500

33965

36,115.00

Other G/L
Acc#

Dec.

5 Velocity Sporting Goods

Dec.

12 Chicago Office Supply

2344

Dec.

22 Velocity Sporting Goods

34719

Dec.

26 Chicago Office Supply

2378

40300

Dec.

30 Chicago Office Supply

2423

10800

Amount

Post Subs. A/C#

252

10800

----------54,145.00

252 VELOCITY SPORTING GOODS

1285 Colgrove Ave.
Pierre, SD 57501
TERMS: 2/10, Net 30
DATE
Oct.
1
Oct.
5
Oct.
14
Nov.
3
Nov. 13
Dec.
5
Dec. 13
Dec. 22

Post

G/L 30600
P

7,367.00

18,030.00

559.15

253

559.15

4,558.00

253

4,558.00

12,484.15
======

Subsidiary AP Ledgers

Amount
36,115.00

252

-----------

======

Purch. Ret.

253

7,367.00

18,030.00

Monthly totals

A/P - G/L
20100

----------66,629.15
======
P

253 CHICAGO OFFICE SUPPLY

1441 E. Michigan
Chicago, Illinois 60606
TERMS: Due on receipt of invoice

FREIGHT: No Charge

FREIGHT : Collect

Description
Balance Forward
Vendor Invoice # 32407
Check # 1112
Vendor invoice # 33371
Check # 1125
Vendor invoice # 33965
Check # 1142
Vendor Invoice #34719

DATE
Description
Debit
Credit
Balance
Oct.
1 Balance Forward
0.00
Oct.
7 Check # 1111
81,285.00
81,285.00
Oct.
19 Vendor invoice # 2112
81,285.00
0.00
Nov.
8 Check # 1124
27,380.00
27,380.00
Nov. 21 Vendor invoice # 2275
27,380.00
0.00
Nov. 23 Check # 1136
36,115.00
36,115.00
Dec. 12 Vendor invoice # 2344
36,115.00
0.00
Dec. 12 Check # 1141
18,030.00
18,030.00
Dec. 26 Vendor Invoice # 2378
Dec. 30 Vendor Invoice # 2423

Debit

Credit

1,087.83
985.80
985.80
558.09
558.09
7,367.00
7,367.00
559.15
4,558.00

Balance
1,087.83
0.00
985.80
0.00
558.09
0.00
7,367.00
0.00
559.15
5,117.15

16

PURCHASES
JOURNAL

DECEMBER
Vendo
r
Debit

Date

Vendor

Credit

Invoic
e

Purchases

No.

G/L 30500

33965

36,115.00

Other G/L
Acc#

Dec.

5 Velocity Sporting Goods

Dec.

12 Chicago Office Supply

2344

Dec.

22 Velocity Sporting Goods

34719

Dec.

26 Chicago Office Supply

2378

40300

Dec.

30 Chicago Office Supply

2423

10800

Amount

Post Subs. A/C#

252

10800

54,145.00
======

Post

G/L 30600
P

7,367.00

252

18,030.00

559.15

253

559.15

4,558.00

253

4,558.00

-----------

-----------

12,484.15

66,629.15

======

======

20100 - ACCOUNTS PAYABLE

Oct.
1 Balance Forward
Oct.
31
Oct.
31
Nov.
30
Nov.
30
Dec.
31

Amount
36,115.00

Purch. Ret.

253

7,367.00

18,030.00

----------Monthly totals

A/P - G/L
20100

Journal
P
CD
P
CD
P

Debit

Credit

Credit
Ctrl
Balance
Init
1,087.83 NF

85,920.80

82,372.83

4,635.80 NF
27,938.09

28,923.89

3,650.00 NF
66,629.15

17

General Ledger Trial Balance

Trial

Balance: sum of each account in

the ledger
Debits = Credit
Accounts summed correctly
Could have offsetting errors

10100
10200
10210
10300
10400
10600
10800
10900
20100
20300
20400
20500
20600
26000
29000
30100
30200
30300
30500
30600
30700
30800
30900
40100
40200
40300
40500
40600
41000

DEBIT
CREDIT
Cash
1,018.64
Accounts receivable
73,483.00
Accounts receivable from employees
120.00
Allowance for doubtful accounts
400.00
Inventory
41,325.00
Marketable securities
8,000.00
Fixed assets
127,560.00
Accumulated depreciation
16,087.00
Accounts payable
31,526.50
Federal income taxes withheld
755.21
State unemployment taxes payable
29.18
Federal unemployment taxes payable
8.65
F.I.C.A. taxes payable
1,129.60
Common stock
75,000.00
Retained earnings
79,213.55
Sales
643,019.50
Sales returns and allowances
34,770.00
Sales discounts taken
4,039.33
Purchases
456,456.00
Purchases returns and allowances
14,128.00
Purchases discounts taken
7,413.82
Freight-in
6,803.00
G/L on sale of fixed assets
120.00
Rent expense
17,600.00
Advertising expense
6,798.00
Office supplies expense
4,102.28
Wages and salaries expense
69,902.30
Payroll tax expense
6,152.46
Other operating expense
9,901.00
TOTALS
868,431.01
868,431.01

SAMPLE

Trial
Balance due
for each
SUA
Assignment

In a computerized system, what is automated?

Closing
Entries

Source
Document
Journal

Financial
Statements

Ledger

Adjusted
Trial
Balance

Trial
Balance
Adjusting
Entries
ACG 306 Chapter 1