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Subsidiary Ledgers and Special Journals

When the journalizing of a multicolumn journal has been completed, the
amount columns are totaled, and the totals are compared to prove the equality of
debits and credits. The proof of the equality of Karns’s cash receipts journal is
shown in Illustration 6-9. Totaling the columns of a journal and proving the equality
of the totals is called footing and cross-footing a journal.

Illustration 6-9
Proving the equality of the cash receipts journal


Posting the Cash Receipts Journal
Posting a multicolumn journal involves the following steps.
1. All column totals except for the Other Accounts total are posted once at the end
of the month to the account title(s) specified in the column heading (such as
Cash or Accounts Receivable). Account numbers are entered below the column
totals to show that they have been posted. Cash is posted to account No.
101, accounts receivable to account No. 112, merchandise inventory to account
No. 120, sales to account No. 401, sales discounts to account No. 414, and cost
of goods sold to account No. 505.
2. The individual amounts making up the Other Accounts total are posted separately
to the general ledger accounts specified in the Account Credited column.
See, for example, the credit posting to Common Stock. The total amount of
this column is not posted. The symbol (X) is inserted below the total to this
column to indicate that the amount has not been posted.
3. The individual amounts in a column, posted in total to a control account (Accounts
Receivable, in this case), are posted daily to the subsidiary ledger account
specified in the Account Credited column. See, for example, the credit
posting of $10,600 to Abbot Sisters.
The symbol CR is used in both the subsidiary and general ledgers to identify postings
from the cash receipts journal.

Proving the Ledgers
After posting of the cash receipts journal is completed, it is necessary to prove
the ledgers. As shown in Illustration 6-10, the general ledger totals are in agreement.
Also, the sum of the subsidary ledger balances equals the control account
balance.

Illustration 6-10
Proving the ledgers after posting the sales and the
cash receipts journals


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