CHAPTER FOUR - SOURCE DOCUMENTS AND BOOKS OF ORIGINAL ENTRY

4.0 Learning Objectives………………………………………………………………..
4.1 Introduction………………………………………………………………………..
4.2 The Need for Source Documents………………………………………………….
4.3 Main Source Documents……………………………………………………………
4.3.1 Sales Invoices………………………………………………………………………
4.3.2 Purchases Invoice…………………………………………………………………..
4.3.3 Credit Note…………………………………………………………………………
4.3.4 Debit Note………………………………………………………………………….
4.3.5 Payment Vouchers………………………………………………………………
4.3.6 Bank Pay-in-Slips………………………………………………………………….
4.3.7 Cheque Counterfoils………………………………………………………………
4.3.8 Receipts……………………………………………………………………………
4.3.9 Purchase Order…………………………………………………………………….
4.3.10 Delivery Note……………………………………………………………………
4.3.11 Goods Received Note (GRN)……………………………………………………
4.3.12 Bin Card…………………………………………………………………………
4.4 The Need for Books of Original Entry…………………………………………
4.4.1 Sales Day Book……………………………………………………………………
4.4.2 Trade Discount…………………………………………………………………….
4.4.3 Purchases Day Book……………………………………………………………….
4.4.4 Analysis of Purchases Day Book………………………………………………
4.4.5 Sales Returns Book……………………………………………………………
4.5 The Journal………………………………………………………………………
4.5.1 Uses of The Journal………………………………………………………………..
4.5.2 The Layout of the Journal………………………………………………………….
4.5.3 Opening Entries……………………………………………………………………
4.5.4 Transfer from One Account to the Other Through the Journal……………………
4.5.5 Other Uses of the Journal………………………………………………………….
4.6  Summary…………………………………………………………………………




 
CHAPTER FOUR

SOURCE DOCUMENTS AND BOOKS OF ORIGINAL ENTRY

4.0  Learning Objectives
At the end of this chapter candidates should be able to:
  Know the role of source documents
  Know the nature and functions of books of original entry
  Prepare day books and Journals
  Transfer from the books, of original entry to the relevant ledgers
  Know the effect of trade discount and value added tax (VAT) on sales and purchases.

4.1  Introduction
In the last chapter we said that the historical cost concept makes financial transactions to be objective because they can be traced to source documents. In this chapter, we shall explain those source documents, their importance and the books of original entry to which they relate. The book of original entry is the accounting record in which transactions are first recorded from source documents.

4.2  The Need for Source Documents
Source documents constitute the source of all original information on the financial transactions of a business.

They perform the following functions:
  They serve as evidence of financial transactions thereby guiding against fraud
  They serve as evidence of financial transactions thereby making audit possible
 They are usually signed by the parties to the transaction therefore they are not usually denied
 They are usually signed by the parties to the transaction, therefore it is almost impossible to alter or collude in order to defraud.
 In some cases, there could be more than one source document for a transaction but they would complement one another.
4.3  Main Source Documents
The main source documents that are used for recording in the books of original entry are:
  Sales Invoices
  Purchases Invoices
  Credit notes
  Debit notes
  Payment vouchers
  Petty cash vouchers
  Bank Pay-in-slips
  Cheque counterfoils
  Receipts
  Monthly bank statements
Others which may not contain full information to make recording possible in the books of original entry are
  Purchase order
  Delivery note
  Goods Received Note
  Bin Card

4.3.1 Sales Invoices
A sales invoice serves as the source document to record in the sales day book. This is a document sent by the seller to the buyer (usually for credit sales) requesting the buyer to pay for the amount stated on the invoice for goods or services rendered to him. Usually bills are sent for service rendered while invoices are sent for goods sold.

A Sales invoice would contain the following particulars
  Name and address of the seller and purchaser
  Date of the sales
  Description and quantity of goods sold
  Unit price and total amount of invoice
  Amount charged for value added tax (VAT)
 Conditions and terms of sales such as trade discount, cash discount and the date payment fall due.
  Signature of the parties

Sales Invoices are pre-numbered and prepared in duplicate. The original is sent to the buyer while the duplicate provides what is recorded in the sales day book.

SPECIMEN SALES INVOICE
Grace Enterprises Iludun Street
               Ado-Odo
 
Invoice No.: 7491
                  Date: 2 June, 2006
                  Your Order No S/K/158

To:  Ajala Ventures 
  11 Ajala Street
  Idimu 

 
The goods underlisted have been delivered in line with your request
 
                N
500 pairs of shoes at N200 per pair                                     100,000
128 silk shirts at N250 each                            32,000
                                                                                                132,000
As you will learn laless 10% discountter,
the 10% discount is a trade discount                                             13,200.
 Trade discount
Sales amount due                                                             118,800
           Please arrange for the payment immediately. A cheque drawn on the firm’s name is acceptable.
 

 -----------------------------    -----------------------------      Accountant             Sales Manager



Trade Discount does not form part of the double entry. It is deducted from the gross sales to arrive at the net amount of sales that would be recorded in the ledger.

4.3.2 Purchases Invoice
A purchase invoice serves as the source document to record in the purchases day book. As explained in the last paragraph, the purchases invoice is the original of the sales invoice sent by the supplier to the customer. Therefore, the sales invoice and the purchases invoice contains the same details. The only difference is that purchases invoices are in the books of buyer and are received from various customers and therefore will not be re-numbered because goods are purchased from different sources.

4.3.3 Credit note
A credit note is a document relating to goods returned by the buyer or refunds to him when the buyer has been overcharged.

Goods may be returned by a customer for any of the following reasons:
  Damage to the goods before delivery
  Wrong specification from the one ordered by the customer.

The purpose of credit note is to inform the buyer that his indebtedness has been reduced by the amount stated on the credit note.

Credit note issued represents returns on sales while credit note received represents returns on purchases. A credit note is made out in red to distinguish it from an invoice.

4.3.4 Debit note
The buyer normally issues a debit note to a supplier to request for a credit note. The buyer may not debit the account of the supplier until his request is approved by him as evidenced by the issue of the credit note to the buyer.
A debit note is also prepared whenever it becomes necessary, for one reason or the other, to increase the amount due from a debtor. An example is where the seller has undercharged a customer on an invoice.

Generally, any expenses that should have been charged to the customer but were erroneously omitted when the invoice was made out would be charged subsequently by means of a debit note prepared by the supplier.



4.3.5 Payment Vouchers
In an organization every payment must be supported by a payment voucher. Examples are payment vouchers for salary and wages, and petty cash vouchers etc.
Payment voucher is an authorising document for payment for a particular expense or service. The voucher must be checked and authorised by a responsible or authorising officer before cash can be paid.

4.3.6 Bank Pay-in-slips
This serves as evidence of cheque and cash paid into the bank by an organization and individuals. It is the major source documents for recording in the bank column of cash book (debit side).

Pay-in-slip contains the following information:
•  Name of branch where the account number is operating
  Name of the business and the account number
  Phone number of the depositor.
  Name of the person paying in the cheques or cash
  If it is cash, the total amount of each cash denomination is stated
 If it is cheque, cheque number, name of bank, amount on each cheque and branch for each of the cheques being lodged
    Column for signature of the person paying in
 Column for signature of the bank official receiving the cheques with the bank‟s official stamp
  Date of lodgement


4.3.7 Cheque Counterfoils
Cheque counterfoils serve as evidence of payment to creditors through the bank and withdrawals made for office or personal use.
In most organizations all cash received must be paid to the bank and all cash payments must be made through the bank, (except petty cash that is operated through the imprest system). Therefore for many businesses, cheque counterfoils have become major source documents for recording in the bank column of the cash book (Credit side).

4.3.8 Receipts
Receipts are issued for cash and cheques received from a customer for goods sold or service rendered to him. The original is issued to the buyer, it represents the document for recording cash paid in his cash book. The seller retains the duplicate, which is the document for recording cash received in the cash book of the seller.
Receipts contain the following information:
-Name of customer
-Date of receiving cash/cheque
-Amount of cash/cheque received (In words and figures)
-Signature of the Receiver

4.3.9 Purchase Order
A purchase order is issued by a customer requesting the seller to supply certain quantities of goods of specified description. The purchase order will also state the agreed price and the delivery point and date.

Invoices are compared with the purchase order when invoices are received. The goods received note is issued after it has been ascertained that the goods supplied meet the specification in the purchase order. An example of a purchase order is the Local Purchase Order (LPO).

4.3.10 Delivery Note
Delivery note accompanies the goods dispatched to the customer. Delivery note protects the dispatch driver from harassment on how he comes about the goods and serves as evidence of goods received by the purchaser when it is signed by him.






4.3.11 Goods Received Note (GRN)
The good received note shows the evidence that the goods dispatched to an organization are received in good condition and meet the specifications. The account department will require seeing the relevant GRN before paying a supplier’s invoice. The GRN is also used to update the Bin Card.

4.3.12 Bin Card
Bin card records movement of inventories. When inventories are added to the store or warehouse bin card is debited and when inventories is issued to production, the bin card is credited.

4.4  The Need for Books of Original Entry
These books are also referred to as books of prime entry or subsidiary books or day books or journals. They are the books in which transactions are first recorded. Transactions can be recorded directly to the ledger but the books of original entry are in use because they have the following advantages which the ledger does not have.
(i) They record the total of transactions in one place rather than the individual accounts.
(ii) They provide an explanation of the transactions recorded. For instance the journal shows the complete story of a transaction. You will not need to look at the debit and credit for a transaction in different accounts/folio.
(iii) They provide records of transactions in chronological order.
(iv) They help to prevent error. The total in the book of original entry can be reconciled with the total in the individual accounts. Main Books of Original Entry
(i) Sales day book
(ii) Purchases day book
(iii) Sales returns book/Returns inward book
(iv) Purchases returns book/Returns outward book
(v) Journal
(vi) Cash book (described in chapter 7)
(vii) Petty cash book (described in chapter 7)

In a computerized accounting system the books may not be in printed form but stored in a computer memory.

4.4.1 Sales Day Book
Sales day book is the book of original entry that records credit sales. The source document is the duplicate of the invoice issued to the customer. The volume of daily sales normally demands that it is issued first to collate a period’s sale before being transferred to sales ledger accounts.

The sales day book shows the following information:
(i) A list of the sales invoices in the order in which they are issued
(ii) The date of issue
(iii) The name of the customer
(iv) The number of the invoice
(v) The sales ledger number to which the individual accounts are posted
(vi) The net amount of the invoice after deducting trade discount and VAT

The sales day book does not show the description of the goods. These are contained in the invoice. Illustration 4.1
Baba Olu Enterprises made the following credit sales with invoice numbers 072 – 079 respectively. Baba Olu trades in textile materials
                  N
    2006, March 1:     Addo Enterprises  1,500,000
     ,,   2:  Moslad & Sons  800,000
    ,,  3:  Kanfo Ltd.  2,500,000
    ,,  4:  Aburi & Sons  900,000
   ,,  5:  Akapo Enterprises  1,500,000
   ,,  6:  Nwosu Ventures  400,000
   ,,  7:  Bamiro Enterprises  600,000
  ,,  7:  Adeolu Ventures  700,000
Record the above sales in the sales day book.

Solution to Illustration 4.1
Baba Olu Enterprises
Date    Customer   Invoice Sales Reference Total Amount
                  No             Ledger     
2006                                    N
            March 1  Addo Enterprises     072    SL     18                                   1,500,000
 ,,     2  Moslad & Sons        073    SL      11                                     800,000
 ,,     3  Kanfo Ltd.               074    SL      15                                   2,500,000
 ,,     4  Aburi & Sons          075    SL       7                                       900,000
 ,,     5  Akapo Enterprises   076   SL     16                                    1,500,000
 ,,     6  Nwosu Ventures      077   SL     10                                       400,000
 ,,     7  Bamiro Enterprises  078   SL       8                                       600,000
 ,,     7  Adeolu Ventures     079   SL      5                                       700,000
               “       7  Transfer to sales a/c                   14                                   18,900,000

The sales ledger reference means the ledger folio to which the sales to each customer are posted. At the end of the period the total of N8,900,000 is posted to the sales account.
Each customer’s transaction is also posted to the debit side of the subsidiary ledger.

A business entity may trade in more than one type of products. The periodic sales may be analyzed according to each product in the sales day book.

Illustration 4.2
In the first week of September 2006 Victor Enterprises issued the following invoices to his customers. The invoice numbers are 1182 to 1187. He trades in wooden chairs and wall clocks.
Date   Description of goods                       N
2/09/06  Jacobs & Sons
  12 wooden chairs at N500  6,000
  4 wall clocks at N650  2,600
    8,600

3/09/06   Moruf Enterprises  
  25 wooden chairs at N500   12,500
4/09/06   Sago Ventures  
  40 wooden chairs at N500   20,000

  50 wall clocks at N650
  32,500
52,500

  Trade discount at 5%
  2,625
49,875
4/09/06   Koku Emmanuel  
  2 wall clocks at N650   1,300
5/09/06   Solola and Co.  
  10 wall clocks at N650   6,500
7/09/06   Annan Enterprises  
  100 wooden chairs at N500   50,000

  80 wall clocks at N650
  52,000
102,000

  Trade discount at 8%
  8,160
93,840

Prepare the analytical sales day book of Victor Enterprises for the week ending 7 September, 2006.

Solution to Illustration 4.2
Date
  Customer  Invoice Number  Sales Ledger    Wooden Wall Chairs             Clock
        A M O U N T
        N         N    N
2/9/06
3/9/06
4/9/06
4/9/06
5/9/06  Jacobs & Sons
Moruf Enterprise
Sago Ventures
Koku Emmanuel
Solala & Co  1182
1183
1184
1185
1186  SL 114
SL 83
SL 68
SL 101
SL 94  8,600  6,000  2,600
12,500  12,500  -
49,875 19,000 30,875
1,300  -  1,300
6,500  -  6,500
7/9/06  Anna enterprises  1187  SL 71



Notes
(i) The analysis would help managers to assess the rate at which each class of inventories is sold for efficient management of the business.
(ii) Where trade discounts were given, the effects were distributed on a pro-rata basis between the two classes of goods sold. For instance in the sales to Sago Venture the amount on wooden chairs and wall clocks were calculated as follows
Wooden chairs N20,000 – (20,000 x 5%)
Wall clocks          N32,500 – (32,500 x 5%)

4.4.2 Trade Discount
A. Trade discount is a discount given to a trader buying in large quantity. The invoice price would be the same for all customers but the net selling price may be different for customers depending on the quantity purchased by them.
B. Trade discount is not recorded in the books of accounts. It is only a means of calculating the net selling price of goods. Only the net amount of goods sold is transferred to the books.

We shall discuss cash discount in the next chapter.

4.4.3 Purchases Day Book
The purchases day book is the book of original entry used to record all credit purchases. The total therein is transferred to the debit of the purchases ledger at regular intervals. Each supplier’s account is credited in the subsidiary ledger. The period may be daily, weekly or monthly depending on the volume of purchases transactions. The details on purchases day book are got from incoming invoices. Each supplier’s account is credited in the subsidiary ledger.
Illustration 4.3
Maomao Enterprises made the following purchases on credit
1/8/2006  Mrs B. Kent    ¢ 150,000 with invoice N0.1062
I. Akolade Ltd.  ¢ 108,000 with invoice No. 083
4/8/2006  Saidi Ojo    ¢ 60,000 with invoice   No. 003
    Wasiu Stars    ¢ 82,800 with invoice    No 288
    Akala & Co    ¢ 98,250 with invoice  No. 1124
7/8/2006  Onuo Paul & Sons   ¢120,000 with invoice   No. 002
J. Mfon Ltd.    ¢  67,500 with invoice    No. 116
    Festac Enterprises  ¢  337,500 with invoice  No. 644
Enter the transactions in the purchases day book of Maomao Enterprises. Solution to Illustration 4.3
Maomao Enterprises
Purchases day book
Date    PL ref. Supplier                        Amount 
      ¢ 
1/8/2006  PL 22  Mrs. B. Kent  150,000 
  PL 132  I. Akolade  108,000 
4/8/2006  PL 08  Saidi Ojo  60,000 
  PL 042  Wasiu Stars  82,800 
  PL 015  Akala & Co  98,250 
7/8/2006  PL 06  Onuo Pan & Co  120,000 
  PL 04  J. Mfon Ltd.  67,500 
  PL 105  Festac Enterprises  337,500 
7/8/2006  Transfer to purchases ledger  1,024,050 

Note
(i) PL reference is the reference to the Purchases Ledger
(ii) The invoice number column is excluded in the Purchases day book because the numbers are erratic. Remember that the purchases day book records invoices coming from different suppliers.

4.4.4 Analyzed Purchases Day Book
Like the sales day book, the purchases day book can be analyzed, but unlike the case of sales day book, it may contain columns for goods meant for resale, goods not meant for resale and bills received for services.





Illustration 4.4
Benard Carena, a sole trader, made the following transactions which relate to the month of July, 2006.
2006                                                   ¢
July1 Bought goods in credit from J. Leye Ltd.                                                       1,500,000
  ,,  2  Bought goods on credit from Bala & Sons                                                  850,000
  ,,  6  Bought stationery on credit from Suzie Ltd.                                               750,000
  ,,  9  Bought goods on credit from Sasa & Sons                                                 640,000
  ,,12  Received invoices for carriage on goods from Samcol                              940,000
  ,,14  Bought goods on credit from Bala & Sons                                              1,050,000
  ,,15  Received invoice for electricity from NEPA                                              750,000
  ,,18  Bought goods on credit from Mike Essien & Co                                        645,000
  ,,25  Bought stationery on credit from Suzie Ltd.                                              874,000
  ,,26  Received invoice from Babs motors for vehicle repair                               682,000
  ,,28  Bought goods on credit from Bala & Sons                                              1,200,000
  ,,30  Bought goods on credit from Nana & Co                                                  450,000
  ,,31  Received invoices for gas consumed from Owusu Ltd.                            894,500

Prepare the Analyzed purchases day book for the month of July, 2006 in the books of Benard Carena.

Solution to Illustration 4.4
Date

2006

J  July 1
,,  2
,,  2
,,  9
,,  12
 ,, 14
,, 15
,, 18
 ,, 25
,,  26
,,  28
,,  30
,,  31

  Names of   PL
Supplier  Folio
 
 
J. Leye     PL 40
Bala & Sons     PL 36
Suzie Ltd.     PL 48
Sasa & Sons     PL 16
Samcol     PL 12
Bala & Sons     PL 36
NEPA     PL 18
Mike Essien & Co         PL 06
Suzie Ltd.      PL 48
Babs Motors       PL 64
Bala & Sons      PL 36
Nana & Co      PL 72
 
Owusu Ltd.      PL 04 Total 
Transfer   

  Analyzed Purchases Day Book  Carriage

 Inwards

¢





940,000







     
______
940,000
     
GL 43  Motor

Expenses


¢










682,000


         
______
682,000
     
GL 68  Electricity
Total


¢
1,500,000 850,000
750,000
640,000
940,000
1,050,000
750,000
645,000
874,000
682,000
1,200,000
450,000
894,500
11,225,500
  Purchases


  ¢

1,500,000
850,000

640,000

1,050,000

645,000


1,200,000
450,000
   
________
6,335,000
     GL 28
55  Stationery

 

¢



750,000





874,000



     
_______
1,624,000
     
GL 30 













  & Gas

¢
750,000
    894,500
 1,644,500
GL 46


Notes
(i) The goods that are to be resold are called purchases
(ii) The analysis shows all invoices for transactions that will not be paid for immediately.
(iii) The sum of the row totals should be equal to the sum of the column totals. This is useful for control purposes.
(iv) The total in each column will be debited to the purchases account, stationery account, carriage inwards account, motor expenses account and electricity and Gas account in the general ledger.

4.4.5  Sales Returns Book
The sales returns book or returns inward book is the book of original entry that records returns on goods sold to customers.

The sales returns book analyses what goods were returned.

Illustration 4.5
Refer to Illustration 4.2
Victor Enterprises
Sept. 10, 2006 Jacobs and Sons returned 3 wooden chairs
Sept. 12 2006 Annan Enterprises returned 2 wall clocks
Sept. 14 2006 Moruf Enterprises returned 1 wooden chair

Prepare the Sales returns book for Victor Enterprises.

Solution to Illustration 4.5
Victor Enterprises Sales Returns Day Book 
Date     Particulars    Sales ledger ref   Amount
2006                        N
Sept. 10  Jacobs & Sons 
 
  3 wooden chairs            SL 114                  1,500
Sept. 12  Annan Enterprises 
    2 wall clocks             SL 71                            1,196

Sept 14  Moruf Enterprises
    1 wooden chair            SL 83                               500
                        Transfer to sales return         GL12                               3,196
Benard Carena
Returns Outwards Book
Date   Supplier  Purchases ledger ref Amount
2006      ¢ 
Aug 3  J. Leye Ltd.             PL40                                   200,000
Aug 5  Bala & Sons               PL36                                   150,000
Aug 10  Mike Essien & Co     PL06                                     40,000
Aug 10  Nana & Co            PL72                                        45,000
Transfer to returns outward account GL 180                                  435,000

The relevant purchases ledger reference would be transferred from the purchases day book.

4.5  The Journal
The journal is used as the book to record transactions that do not fit into other subsidiary books. The information recorded in the journal about each transaction includes:
  The date of the transaction
  The debit and credit changes in specific ledger accounts
  A brief explanation of the transaction, referred to as narration or narrative.

The narration is required to indicate the purpose and authority of the transaction. For efficient use of the journal, candidates must be able to analyse the effect of a transaction on assets, liabilities, and Owner’s equity.

4.5.1 Uses of the Journal
The journal is used for the following:-
  Opening and closing entries
  Transfer from one account to the other
  Purchases and sales of non-current assets on credit.
  End of period adjustments   Correction of errors.

4.5.2 The layout of the Journal
Journal
Date    Particulars      Folio     Dr    Cr
  The name of account to debit   XX
  The name of account to credit  XX
  The Narration

The name of the account to be debited is always shown first. The name of the account to credit is inset to the right hand side. The narration is not indented. A blank space should be left after each entry to make each set of journal entries stand out clearly.

4.5.3 Opening Entries
When the journal is used for opening entries the aim is to determine the value of the opening capital.

Illustration 4.6
N. Gyan‟s business affairs on 1 January, 2006 stood as follows:
                            ¢
Cash in hand  66,000
Cash at bank   366,000
Inventories    375,000
Furniture and fittings   180,000
Creditors  150,000









  
Record these transactions in a Journal.
Solution to Illustration 4.6
N. Gyan
Journal
Date                Dr    Cr
2006                ¢                 ¢
1 Jan  Cash in hand  66,000
  Cash at bank  366,000
  Inventories  375,000
Furniture and fittings  180,000
Creditors    150,000
Capital (difference)    837,000
Being assets and liabilities of  N. Gyan at 1 January, 2006.

4.5.4 Transfer from one account to the other through the journal
Only the journal can readily explain the transferring from one account to the other, what happens will be narrated and any doubt will be set aside.

Illustration 4.7
Record through the journal entry transfer of N600,000 from Wasobia & Co‟s account in the bought ledger to their account in the sales Ledger, to set off purchase against sales. The transaction took place on 31 January, 2007.

Solution to Illustration 4.7
Wasobia and Co
Journal
                Dr    Cr
31/01/07 Bought ledger control account  600,000 
     Sales ledger control account    600,000
  Balance on bought ledger transferred    to sales ledger on contra basis.

4.5.5 Other uses of the Journal
The use of journal for other purposes is shown in the following illustration:
Illustration 4.8
The following transactions took place in the books of Orire Ltd. in June, 2006
(i) A machine is bought on credit from Jerry Enterprises for N186,000 on June 1
(ii) A motor vehicle is sold to Jebeleje on credit for N360,000 on June 8
(iii) Bobo. T a debtor owed N160,000. He offers a motor car in full settlement of the debt on June 16 and the offer was accepted.
(iv) Ilemobayo is a creditor. On June 25, his business is taken over by Prospect Ventures to which the debt of N45,000 is now to be paid.
Show the journal entries to record the transactions.

Solution to Illustration 4.8
Orire Ltd.
Journal 
Date                           Dr.         Cr.
2006                  N          N
June 1  Machinery  186,000 
  Jerry Enterprises    186,000

  Recording machinery brought on credit. 
June 8    Jebeleje  360,000 
    Motor vehicle    360,000

  Recording motor vehicle sold on credit 
June 16  Bobo T  160,000 
  Motor vehicle    160,000
  Recording acceptance of motor car in  

  full settlement of debt. 
June 25  Ilemobayo  45,000 
  Prospect Ventures    45,000
  Debt owed to Ilemobayo to be paid 
  to Prospect Ventures. 

The use of journal for end of period adjustments and correction of errors would be examined in detail later.



4.6  Summary
In this chapter we have discussed source documents, their uses and their relationship to the books of original entry. We also examined the importance of the books of original entry and illustrated how they are to be transferred to the ledger accounts.
The Journal, as a means of recording unusual transactions, was also examined.