• Sales Journal
• Purchases Journal
• Cash Receipts Journal
• Cash Disbursements Journal

1. Enter the affected credit account in the "Accounts Credited" column.

2. Briefly describe the transaction in the "Explanation" column. If the transaction is an invoice, enter the invoice number.

3. Enter the amount of cash received in the "Cash DR" column.

4. If there was a discount, enter that amount in the "Sales Discount DR" column.

5. Enter the amount in the appropriate CR account column.
• If the specific account is not listed, enter it under "Other Accounts CR".

6. PR column is left blank until posting to the GL occurs.

Cash Disbursements Journal, Source Docs

1. Enter transaction date.
2. Enter customer account.

3. Enter Invoice number.

4. Enter transaction amount.

5. Leave the Post Reference until you post.

Sales Returns & Discounts Journal, Source Docs

1. Enter transaction date.

2. Enter name of  account credited.
3. Enter credit memo #.

4. Enter transaction amount.

5. Leave PR column blank until posting to GL.

Purchases Journal, Source Doc

1. Transaction date

2. Supplier name in "Account" column

3. Invoice date

4. Terms

5. PR left blank until posting
6. AP CR amount always

7. Appropriate DR column

Accounts Receivable Ledger

Accounts Payable Ledger

Accounts Receivable Ledger, Posting Process

1. Daily:  Sales or credit transactions from the General or Sales Journal are posted to individual accounts in the AR Ledger.

2. End of Month (or more frequently): All customer accounts with balances are added up in the AR Ledger.

3. Post: The sum of all customer accounts with balances in the AR Ledger is posted to the AR controlling account in the GL.

Accounts Payable Ledger, Posting Process

1. Daily: Credit purchase transactions are posted to individual suppliers' accounts in the AP Ledger.

2. Monthly: All supplier accounts with balances in the AP Ledger are totaled.

3. Post: The sum of all suppliers' accounts with balances in the AP Ledger is posted to the AP controlling account in the GL.

Revenues, expenses & withdrawals are closed at the end of the accounting period. The data from these accounts show how the owner's capital account is affected.

• Revenue and Expense balances are transferred to the Income Summary account.
• Debit Revenue account
• Credit Expense account
• Income Summary balance and Withdrawals balance are transferred to Owner's Capital account.
• Credit the Withdrawals account