Specialized Journals, Cash Control, and Banking.
(Reference: text, chapter #10, 11 [pages 454 - 458 only], and 12)
In order to successfully complete the 3A Accounting test on specialized journals, cash control, and banking , the
student should be able to perform the following tasks:
- state the advantages and disadvantages of the synoptic journal, as well as:
- record transactions within a synoptic journal;
- balance the synoptic journal;
- forward the synoptic journal;
- post the synoptic journal.
- record standard merchandising transactions within the five-journal system;
- state the advantages and disadvantages of the five-journal system;
- record transactions within the:
- cash receipts journal;
- sales journal;
- cash payments journal; and the
- purchases journal.
*Note: In the five-journal system, unusual entries, such as returns and allowances, are recorded within the
General Journal, hence the expression, "five-journal" system.
- demonstrate the accounting entries used to record the cash discounts;
- correctly interpret the terms of sale extended to the customer, by the seller, when goods are sold on account.
*Note: The terms of sale often appear in an expression such as:
- In addition, the student should also be able to:
- calculate cash discounts on credit sales or purchases;
- record the payment of purchases where a discount is received; and
- record the the receipt of payment where a discount is offered.
as well as understand and explain the significance of:
- a personal bank account;
- a personal statement of account;
- an NSF cheque;
- a certified cheque; and
- a post-dated cheque.
- Students must understand the processes associated with credit card sales, including:
- preparing the credit card slip;
- imprinting the credit card slip; and
- signing and distributing the copies of the imprinted slip.
as well as the process involved in depositing the sales proceeds associated with credit card transactions,
- summarizing and totaling all of the sales slips for the day;
- recording the totals within a Merchant Deposit Summary;
- placing the slips and summary into a special envelope; and
- recording the gross amount on the bank deposit slip.
- Students must also be able to show how credit card charges are dealt with and recorded within the books of the merchant.
- Students must be able to understand and explain a variety of concepts associated with business banking, including:
- daily cash receipts:
- mail receipts;
- over-the-counter sales; and
- cash register receipts
- cash short and over;
- the current bank account; and
- the busness deposit.
- Students should be able to explain a number of techniques used by businesses to maintan control over their accounting of cash
- separate duties;
- daily deposit of funds;
- depositing of funds intact;
- making all payments by cheque;
- endorsing cheques "For Deposit Only";
- preparing deposit slips in duplicate;
- using cash registers in stores; and
- monthly reconciling of the bank account(s).
- Students must be able to prepare a Bank Reconciliation Statement;
- Students must be able to prepare the journal and ledger entries required to:
- establish a petty cash fund; and
- replenish a petty cash fund.
- Finally, students should be able to demonstrate their ability to maintain a petty cash fund through the correct preparation of:
- petty cash vouchers, and
- a Summary of Charges.
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