4.7 Transferring the auxiliary journals to the ledger  (Page 2/3)

Bank account – Double entry is total payments

Assets – Double entry is bank accountExpenditure – Double entry is bank account

ASSIGNMENT 4 : transfer of CRJ with cost price of sales

• Use the completed CRJ of Lubbe Dealers (Activity 3.1 Assignment 3) and transfer. ( Supply own ledger paper.)

ASSIGNMENT 5 : transfer of the debtors journal

• Use the complete DJ of Gesina Dealers (Activity 3.2 Assignment 1) and transfer it to the ledger.

• The total of the sales column, as well as the total of the selling costs column, is transferred to two accounts as follows:

sales column

1. Debtors control account – debit with the total of credits sales for the month(Asset increases on the debit side.)

2. Sales account – credit with the total of the credit sales for the month(Ownership interest increases on the credit side.)

The double entry for sales is debtors control and the double entry for debtors control is sales.

selling costs column

1. Selling costs account – debit with the total selling costs for the month (Ownership interest decreases on the debit side.)

2. Trading inventory account – credit with the total of the credit sales for the month(Asset decreases on the credit side.)

Double entry for selling costs is trading inventory and double entry for trading inventory is selling costs.

ASSIGNMENT 6 : transfer of the creditors journal

• Use the completed CJ of Toledo Dealers (Activity 3.2 Assignment 2) and transfer it to the ledger.

• Column totals are transferred on the last day of the month. Entries in the sundries column are individually transferred to the specific account on the date of the entry.

• The transfer is done as follows:

1. Creditors control – credit with all the credit purchases for the month(Liability increases on the credit side.)

2. All assets purchased are debited separately with the amount of purchases(Asset increases on the debit side.)

3 All expenditure incurred on credit is debited with the specific amount(Ownership interest decreases on the debit side.)

The double entry for creditors control is sundry purchases. The double entry for every asset purchased or expenditure incurred on credit, is creditors control.

ASSIGNMENT 7 : receipts from debtors: transfer of the DJ and CRJ

• Use the completed DJ and CRJ of Highway Dealers (Activity 3.3) and complete the transfer.

• When a debtor pays his account, it is recorded in the CRJ and then transferred to the ledger as follows:

1. Bank – debit with the cash received(Asset increases on the debit side.)

2. Debtors control – credit with the amount paid by debtors(Asset decreases on the credit side.)

The double entry in the case of bank is debtors control, and in the case of debtors control it is bank.

ASSIGNMENT 8 : payments to creditors: transfer of the CJ and CPJ

• Use the completed CJ and CPJ of Marais Dealers (Activity 3.4 Assignment 1) and complete the transfer.

• When payments are made to creditors, they are recorded in the CPJ and then transferred to the ledger.

• This is done as follows:

1. Creditors control – debit with all payments to creditors for the month(Liability that decreases is debited.)