Question | Answer |
What is the relationship between a controlling account and a subsidiary ledger | A controlling account summarizes all accounts in a subsidiary ledger. The balance of a controlling account equals the total of all account balances in its related subsidiary ledger. |
In which column of the cash payments journal are the amounts that are posted individually to the accounts payable ledger? | Accounts Payable Debit column. |
To which accounts are the separate amounts in the sales journal posted individually? | Customer accounts listed in the Accounts Receivable Debit column. |
In which column of the cash receipts journal are the amounts that are posted individually to the accounts receivable ledger? | Accounts Receivable Credit column. |
What accounts are listed on a schedule of accounts receivable? | All customer accounts that have balances. |
For which columns of a special journal are the column totals posted to the general ledger? | Each special amount column. |
Which amounts in a general journal are posted individually | Amounts in the Debit and Credit columns. |
List the five steps for posting to a general ledger account. | 1. Write the date 2. Write the journal page number 3. Write the amount in the Debit or Credit column of the account. 4. Calculate and write the new account balance. 5. Write in general ledger account number. |
In what order should special journals be posted to the general ledger? | 1. Sales journal 2. Purchases journal 3. General journal 4. Cash receipts journal 5. Cash payments journal. |
What is the source document for a correcting entry affecting costumer account? | Memorandum. |
In what order should special journals be posted to the general ledger? | It does not affect the general ledger accounts. |
How does posting a correcting entry affect customer accounts differ from recording other general ledger entries that impact subsidiary ledgers accounts? | Only a reference to the subsidiary ledger account is entered in the Post. Ref. column of the general journal. |