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Chapter 9
Accounting Information Systems
To help with the posting to the general ledger as we discuss the special journals, we will use the
following selected accounts from Jill Hanlon Retailer. You will notice these account numbers being
used as we progress through the special journal examples.
Account Description
Account # Account Description Account #
Cash
101
Hanlon, Capital
300
Accounts Receivable
110
Hanlon, Drawings
310
Inventory
120
Sales Revenue
400
Accounts Payable
200
Sales Discount
405
Bank Loan
220
Cost of Goods Sold
500
Maintenance Expense
525
The Sales Journal
The sales journal records all the details of sales on account. Cash sales are not included in this
journal. They will appear in the cash receipts journal which records all cash received. The sales
journal includes 1) the date of the sale, 2) the name of the customer, 3) the invoice number and 4)
the value of the sale and inventory.These items are shown in Figure 9.4.
Sales Journal
Page 1
Date
Account
Invoice # PR
Accounts Receivable/Sales
(DR/CR)
COGS/Inventory
(DR/CR)
figure 9.4
When a sale is made, as shown on January 5 in Figure 9.5, the customer subledger account must be
updated immediately. Updating the subledger account follows these steps.
1
Transfer the date from the sales journal to the date column in the subledger account.
2
Make a note of the journal and page number in the PR column of the subledger.
3
Transfer the amount of the accounts receivable column to the debit column in the subledger.
4
Indicate the posting is complete by entering a check mark in the PR column in the sales
journal.
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2
3
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