Accounting ISU #2
Mrs. Martin
Patrik Salka
May 26, 2008
Accounting Grade 11
The Synoptic Journal
The two column general journal is mainly used for transactions that are not everyday transactions
The routine transactions are entered in the synoptic journal.
Multi-columnar journal is a special journal that has multiple columns.
Each transaction entered into the synoptic journal usually balances because it is identical to a journal entry (there is a debit and credit), which usually balances.
The synoptic journal saves time when entries are posted because it has different colum 12212r1712m ns that are beneficial during the journalizing process by sorting items and providing columns to make this process much easier.
Accountants determine the items that should be set up in unique columns by identifying the more frequently occurring items which are journalized.
Step 1: Draw a single ruled line across all of the money columns of the journal under the last entry on the page
Step 2: Total each money column separately and write down the totals in pencil under the single line. These are called "tiny pencil footings" or "pin totals"
Step 3: Separately add all the pin totals of the debit and credit columns using a printing calculator. These two sums should give you the same grand total. The journal is balance is both totals are the same and out of balance if they are not. When it is out of balance, this indicates that there has been one or more errors in the journal and need to correct them before proceeding to posting
Step 4: When journal is balanced, write the column totals beneath the pin totals
Step 5: To finish off, draw a double ruled line underneath all the money totals
When a synoptic journal needs to be forwarded, a new page must be started. To start off you put the previous balances in the new page of the synoptic journal and therefore "forwarded". * You must have the same date as the previous entry and the totals from the last should be the new starting figures therefore allowing accumulation for that month.
It is important to forward in a synoptic journal because this way the totals can be added up for the whole month.
Cross-referencing is a simple process in the synoptic journal. First, the account number is entered in parentheses beneath the column total being posted. The items in the Other Accounts column have a posting reference column beside the amount being posted. Posting should be completed before the totals are balanced.
The general journal is used with a synoptic journal because a synoptic journal is mostly used by a junior employee to record the routine transactions of a business. The two column general journal is used by senior accountant employees to record entries that are more intricate. The synoptic journal used alongside the general journal can be described as a two-journal system.
Recording a debit entry into a column can be done but it must be in red or circled. This is done in order to identify that the entry indicates that its effect in the column is opposite of what specified in the column heading. When adding the column, the circled item must be subtracted to give the correct total.
Some accounting entries require more than one line in the synoptic journal because there may be cases where at least two of the accounts affected by the transaction need to be entered in the "Other Accounts" section in the journal.
The synoptic journal is suitable for a small business because only one person can work on it at a time.
The Five-Journal System is one in which five separate journals are operated at the same time. Each journal is restricted to a particular type of transaction. The accounting entries are channeled from various source documents into the separate journals. Each of the journals is posted individually to the general ledger. The subsidiary ledgers are posted independently from the separate copies of the source documents.
The two main advantages of
using a number of journals are
a) Allows several people to be involved in the journalizing process at the same
time.
b) Makes the accounting system more efficient by allowing specialization of
duties among the staff.
Cash Receipts Journal- used to
record all transactions that directly increase the bank balance. Every entry
involves a debit to the bank. Most common transactions:
a) Cash Sales
b) Receipts on account
Sales Journal- used to record all transactions involving the sale of
merchandise on account. Every entry involves transactions related to sales on
account. Source Documents involved
a) Sales invoices
b) Credit invoices
c) Charge Sales Slips
Cash Payments Journal- used to record all transactions that directly decrease
the bank balance. Every entry involves a credit to the bank. Most Common
transactions
a) Issuing of a cheque
Purchases Journal- used to record all transactions involving the buying of
goods or services on account. Every entry involves a credit to Accounts
Payable. Source Documents:
a) Suppliers Invoices
The two most common transactions in the cash receipts journal are cash sales receipts on account.
When a sale is partly on account and party cash, it goes into the cash receipts journal.
A "general" section is not needed in the sales journal because only special columns are used in the sales journal.
The common element in all accounting entries in the cash payments journal is how they all result in a credit to the bank.
A cash payments journal is the same thing as a Cash disbursements journal just different name.
The source documents for all entries in the purchases journal is the suppliers invoices
The order in which each journal is posted in the five journal system does not matter.
The codes used for cross-referencing in the five journal system are:
Journal Cash Receipts Cash Payments Sales Purchases General Synoptic Code CR CP S P GJ or J SN
The General Journal is used to provide a continuous record of the accounting entries in the order in which they occur
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