You are on page 1of 2

73

Solutions to Chapter 10

1. a. Fifty times
b. yes once.

2. a. CP f. G
b. G g. SJ
c. P h. G
d. G i. PJ
e. CR j. G

3. a. No, the clue would be in the cash postings which are only by totals at the end of the month.
b. Yes.
c. Yes, because of the posting in the accounts payable ledger, credit side, which is on a specific
date. Had there been a special journal for this, like the cash, it should have been posted in total
amount and dated end of the month.
d. Yes, account revenue are posted in detail, so it must have come from the general journal, while
the cash revenue is posted once by total at the end of the month so there must have been a cash
receipts journal.
e. Yes, the account transactions , are posted in detail so it must have come from the general journal,
while the cash payment is posted once by total at the end of the month so there must have been a
cash payment journal.

4. a. The cash custodial function should be separate from the recording function. Persons in charge of
should not be in charge of cash. If possible persons in charge of subsidiary ledgers should not be
in charge of the special journals.
b. The invoice should not immediately be forwarded to the accounting department. It should be
forwarded to the purchasing department who compared the invoice against the receiving report
approves it and forwards it to the accounting department.

5. see separate sheet

6. Thirty eight accounts will appear in the general ledger, five current assets, five plant assets, eight
liability accounts and twenty owners equity accounts.
Ten subsidiary ledgers will be opened, five accounts receivable and five accounts payable.

7. General journal
Oct. 4 Accounts Receivable 600
Sales 600

8 Accounts Receivable 840
Sales 840

11 Sales Returns 40
Accounts Receivable 40

14 Cash 588
Sales Discount 12
Accounts Receivable 600

15 Cash 9,346
Sales 9,346

19 Accounts Receivable 350
Sales 350

21 Accounts Receivable 159
Sales 159

23 Accounts Receivable 496
Sales 496

24 Cash 343
Sales Discount 7
Accounts Receivable 350


74

Cash (101)
10/14 588

5. SALES DIVISION CREDIT DEPARTMENT ACCOUNTING DEPARTMENT PRODUCTION DEPT.

Customer Sales Price Job Job order slip
Order Quotation Order
2 2 1




Prepares price Approve price Opens job order Purchase the order &
Quotation quotation control sheet sends product &
job order slip
back to sale

Customer

Price Approve Opens job Job order slip
Quotation price order control
1 quotation 2 sheet 1
2




Approved Sales
Price Invoice SHIPPING DEPT.
quotation 2 2




Prepares Records in the Sales invoice
Job order sales journal 1
Slips 2




Job order slip Sales journal customer Prepares
1 delivery
report
2

3
Sales invoice
2 & 3 delivery
receipt
R 1
DR 2&3 2
3
4
Job order slip Sales invoice
1 3



Prepares sales
Invoice Posts to the
card



Customers card


Sales invoice
1
2

3
4
5