Chapter 11 Review
 11.1- Subsidiary Ledger Systems
 11.2- The Synoptic Ledger
 11.2- The five Journal System (NEW)
11.1 – Subsidiary Ledger System
 What is it?
 Is a separate ledger that contains a number of accounts of a
similar type, such as accounts receivable
 The accounts in a subsidiary ledger make up the detailed data
for one related CONTROL ACCOUNT (general ledger account
related to a subsidiary ledger, example of Control Account:
Accounts Receivable)
 Refer to exercise #2 pg. 518 (t), pg. 384-385 (w)
11.2 – The Synoptic Journal
 What is it?
 Takes everyday, routine transactions and enters into a
“specialized” journal that sorts items during the journalizing
process.
 Synoptic Journal has a number of columns to accumulate
accounting entries
 Saves time when posting. Only the totals of special columns
are posted, therefore, only one posting for each account
 Be sure to balance the Synoptic Journal (cross-balancing:
grand total of all debit columns against grand total of all credit
columns)
 Refer to Exercise #2 pg. 537-539 (t), pg. 400-402 (w)
11.2 FIVE JOURNAL
ACCOUNTING SYSTEM
SOURCE DOCUMENTS: REFER TO OVERHEAD
Cash Sales Slips
Cash Receipts
Bank CR Memos
Sales Invoices
Credit Invoices issued
Purchase Invoices
Credit Invoices received
Pay liabilities
Pay expense
Drawings
Buy assets
Cheque Copies
Bank DR Memos
-correcting
entries
FIVE
JOURNALS
Cash Receipts
Journal
(C.R.J)
Other Source Documents
(non-routine entries—
adjusting/closing entries)
Sales Journal
(S.J)
Ex. P. 497 (t)
Purchase
Journal
(P.J) p. 498 (t)
Cash Payment
Journal (C.P.J)
Ex. p. 498 (t)
Bank
DR
Ex p. 497 (t)
A/R
Ledger
A/P
Ledger
ALL FIVE JOURNALS ARE POSTED TO:
General
Ledger
General
Journal
(G.J)
11.2 – Exercise #4 pg. 502-503 (t), pg. 405 (w)
Question: In which of the five journals would each
transaction below be recorded?
TRANSACTIONS:
a.
A cheque is issued to a supplier on account

b.
A purchase invoice is received from a supplier of
merchandise

c.
Cheque Copy  Cash Payment
Purchase Invoice  Purchase Journal
A cheque is received on account from a customer

Cash Receipts  Cash Receipts Journal
Let’s Try It!
 Complete Exercise #3 & 4 p. 502-503 (t), p. 405 (w)
 Complete Exercise # 5 p. 530-532 (t), p. 443-452 (t)
A) Post the subsidiary ledgers on a daily basis directly
from the source documents
B) Balance and rule each of the five journals
C) Hand-in when done – you will have more time
tomorrow to work on it.
d. A cash sale is made to a customer
 Cash Sales Slip  Cash Receipts Journal
e. A sale on account is made to a customer
 Sales Invoice  Sales Journal
f.
A cheque is issued to the owner for his personal
use

Cheque Copy  Cash Payment Journal
g. A cheque is issued to pay for wages for the
period

Cheque Copy  Cash Payment Journal
h. A sales invoice is used
 Sales invoice  Sales Journal (A/R Ledger)
i.
A correcting entry is made to transfer a debit amount from
the Supplies account to the Miscellaneous Expense account

j.
A cheque is issued to pay for a cash purchase of
merchandise.

k.
Cheque Copy  Cash Payment Journal
A bank debit advice for a service charge is received

l.
Other Source Documents  General Journal
Bank Debit Memo  Cash Payment Journal
A cheque is issued to a supplier on account

Cheque Copy  Cash Payment Journal
m. A cheque is issued to pay for monthly rent

Cheque Copy  Cash Payment Journal
n. A bank debit advice is received with respect to a
bad cheque

Bank Debit Memo  Cash Payments Journal
o. A bank credit advice is received with respect to
interest earned.

Bank Credit Memo  Cash Receipts Journal
p. A new typewriter is purchased and a down
payment is required. A cheque is issued.

Cheque Copy  Cash Payment Journal
q. The owner collects a debt from a customer but
keeps the money for his personal use

r.
Withdrawal  General Journal, Cash Receipt  Cash
Receipt Journal
The owner spends a sum of money out of his own
pocket for a business purpose and is reimbursed
by means of a cheque.

Cheque Copy  Cash Payments Journal