1. Chapter 17: Special Journals:
Purchases and Cash Payments
The Accounting Cycle for a Merchandising
Corporation!!!

2.  Understand the Special Journals by being able
to…
 Explain the purpose of the purchases & cash payments
journals
 Record transactions in the purchases & cash pavements
journals
 Post from the special journals to the General Ledger &
Subsidiary Ledgers
 Total, prove & rule the purchases & cash payments journals
 Prepare a schedule of accounts payable
 Prove cash.
 Define the accounting terms used in this chapter.

3. SalesJournal  Sale of merchandise
Cash Receipts
on account
 Receipt of all cash
Journal  Purchase of any
Purchases Journal asset on account
Cash Payments  Payment of
cash, including
Journal payments by check
General Journal  Any transaction
that does not fit
into special journals

4. Purchase of any asset
on account
Source document:
purchase invoice

6.  Received Invoice 7894 from Pro Runner Warehouse
for merchandise purchased on
account, $2,300, terms 1/20, n/30.

7.  Purchased store equipment from Champion Store
Supply on account for $1200, Invoice #3417.

12. Used to record all
transactions in which cash is
paid out or decreased, such
as checks & banks statements
Source document: check or
bank statement

14. Paid $1,500 to Keystone Insurance company for the
premium on a six-month insurance policy, check
1001
Start here on Monday.

15. Purchased merchandise from Fast Lane
Athletics for $1,300, ck 1002

16. Recording Employee Payroll

17. Recording Miscellaneous Expense

22. Posting Rules
 Commit to memory:
1. Post Daily:
 Any General Debit or Credit column
to Gen. Ledger
 Accounts Receivable & Accounts
Payable to Subsidiary Ledger
2. Post at End of Month:
 All special amount columns with
account names

23. Process of verifying that cash
recorded in accounting
records agrees with amount
entered in checkbook

24. In General Ledger

25. Now, on to some class activities on
our topic!!!