Write TRUE/FALSE 1) A sales journal is used to record cash sales. 2) The purchas

Question

Write TRUE/FALSE 1) A sales journal is used to record cash sales. 2) The purchases journal is used to record purchases 3) The general journal is used ne for transactions not covered by special journals and for b adjusting, closing, and correcting entries. 4) Special journals allow an efficient division c procedure. .which is also an effective control 5) When posting from special journals each individual debit and credit entry of similar transactions is entered in the general ledger. 6) Most transactions for merchandising businesses fall into four groups: sales, purchases, cash receipts, and cash disbursements. subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger. 8) Two common subsidiary ledgers are cash receipts and cash disbursements 9) The controlling account Accounts Payable in the general ledger has a 10) Subsidiary ledgers are not needed in perpetual inventory systems because the accounting séparate subsidiary account for each creditor in the accounts ledger need.

Explanation / Answer

Solution:

1) A sales journal is used to record cash sales – FALSE

Sale Journal is used to record only CREDIT SALES. Hence the statement is FALSE.

2) TRUE

Purchase Journal is used to record purchases of merchandise on CREDIT. Cash purchases are not recorded in Purchase Journal.

3) TRUE

The general journal is used for the transactions not covered by special journals and for adjusting, closing and correcting entries.

4) TRUE

Special Journal allow an efficient division of labor, which is also an effective control procedure. A Special Journal is efficient tool in helping journalize and post transaction.

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