Accounting Chapter 11 Audit your Understanding

What is the relationship between a controlling account and a subsidiary ledger?

a controlling account summarizes all accounts in a subsidiary ledger. The balance of a controlling account equals the total of all account balances in its related subsidiary ledger

In what order should special journals be posted to the general ledger?

1. sales journal 2. purchases journal 3. general journal 4. cash receipt journal 5. cash payments journal

List the five steps for posting to general ledger account?

1. write the date in the date columns of the account 2. write the journal page number in the post. ref. column of the account 3. write the amount in the debit or credit column of the account 4. calculated and write the new account balance in the balance debit or balance credit column of the account 5. write the general ledger account number in the post. ref. column of the journal

In which column of the cash payments journal are the amounts that are that are posted individually to the accounts payable ledger?

Accounts payable debit column

What is the source document for a correcting entry affecting customer accounts?

Memorandum

In which column of the cash receipts journal are the amounts that are posted individually to the accounts receivable ledger?

accounts receivable credit column

What accounts are listed on a schedule of accounts receivable?

all customer accounts that have balances

Which amounts in a general journal are posted individually?

amounts in the debit and credit columns

To which accounts are the separate amounts in the sales journal posted individually?

customer accounts listed in the accounts receivable debit column

For which columns of a special journal are the column totals posted to the general ledger?

each special amount column

How does a correcting entry affecting customer accounts impact the general ledger accounts?

it does not effect the general ledger account is entered in the Post. ref. column of the general journal

How does posting a correcting entry affecting customer accounts differ from recording other general journal entries that impact subsidiary ledger accounts?

only a reference to the subsidiary ledger account is entered in the post ref column of the general journal