The Journals

Date: 2015-10-07; view: 423.

Under the manual double-entry system for recording data on past activities, transactions were first re­corded in a general journal and then posted to ledgers. Actually, data may be recorded in multiple journals to facilitate posting, provide a means for dividing up the work involved in making the journal entries, improve control methods, and reduce the recording costs. The following are typical multiple or special journals used in recording data on past economic activities:

1. Sales journal.

2. Purchases journal.

3. Cash receipts journal.

4. Cash disbursements journal.

When special journals are established, transactions are recorded in the appropriate special journal rather than in the general journal. Thus, in recording past activities, all sales transactions, except sales for cash, would be recorded in the sales journal. All merchandise purchase trans­actions, except cash purchases, would be recorded in the purchases journal. Cash receipts transactions would be recorded in the cash re­ceipts book, and cash disbursement transactions would be recorded in the cash disbursements book.

Accountants should be familiar with the use of multiple journals, but it must be understood that no standard form of multiple journals exists. In fact, various types of special journals should be developed for different purposes.

Columnar Journals. Use of the expanded or columnar general journal is a technique which saves time and effort in posting to ledgers. The columnar general journal has special columns for debits and credits to certain accounts. Posting is reduced because only totals for the month are transferred to the general ledger.

Notes:

Answer the following questions:

1. How were transactions recorded under multiple double-entry system?

2. Why may data be recorded in multiple journals?

3. What kind of journals are used in recording data on past activity?

4. How are transactions recorded when special journals established?

5. Do any standard forms of multiple journals exist?

6. What are columnar journals used for?

7. What has the columnar general journal?

8. Why is posting reduced?

VII. Translate the following sentences with phrasal verbs. All the given sentences would sound quite natural if used by a native English-speaking businessman to a colleague. Make a dialogue.

1. I wouldn't bank on it (rely).

2. He was trying to butter you up (to flatter).

3. You'll have to climb down (to make a decision).

4. When do you think they'll cough up? (pay).

5. He cried off at the last moment (said he couldn't come).

6. You'll have to knuckle down to it (to work hard).

7. He's not letting on at the moment (saying what he thinks).

8. When are you going to let up? (to relax).

9. I'd like to mull it over (to think about it).

10. He is very difficult to pin down (to get exact details from).

11. The deal is just about sewn up (agreed).

12. We need a day or two to size up the situation (to consider).

13. The Chairman stamped on the scheme immediately (stopped).

14. They've tarted the old model – the XP9 – up a bit (made it look more attractive).

15. We ought to thrash out a new advertising letter (to discuss and agree).

VIII. Language in the office, particularly to visitors, is relatively formal, so you would be unlikely to say any of the following (A). You would better say instead (B):

Unit 4