General Ledger Practical Problems and Solutions

Problem 1 The first problem in this set of three focuses on opening a factory ledger. The following balance appeared in the books of Marry & Company on 31 December 2018. Cash $39,000 Accounts Receivable 15,000 Stores 21,000 Work-in-process Materials 10,000 Work-in-process Labor 7,000 Work-in-process Factory Overhead 8,000 Finished Goods 14,000 Machinery & Equipment 1,36,000 Land & Buil…

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Subsidiary Ledger

Subsidiary Ledger: Definition A subsidiary ledger is a ledger that contains a backup of more detailed accounts than does the general ledger. The Need for Subsidiary Ledgers The need for timely and accurate information, as well as good internal control procedures, requires that certain backup accounts be maintained. To illustrate, management needs to know not only the total of its accounts receivab…

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Difference Between Journal and Ledger

This article summarizes the differences between journals and ledgers in the form of a comparison chart. Journal Ledger 1 Transactions are recorded chronologically Transactions are recorded in classified form 2 The process of entering a transaction in the journal is called journalizing The process of entering a transaction in the ledger is called posting 3 As the journal is the main book of entry,…

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Ledger Accounts

What Is a Ledger? Before explaining what ledger accounts, it’s worth briefly introducing the ledger. Journals are used to record transactions chronologically, but journal entries only show the effect of individual transactions. Business owners, however, don’t just want to know about the effects of individual transactions on financial statements. They are also interested in the accumulated effect o…

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General Ledger: Fill In the Blanks

1. is the process of transferring journal entries to ledger accounts. See answer 2. The left-hand side of the ledger account is referred to the . See answer 3. The right-hand side of the ledger account is referred to as the . See answer 4. is the abbreviation used for debit. See answer 5. The term credit is usually abbreviated as . See answer 6. is a process that involves finding out the balance o…

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