Question

Issued check (Doc. No. 20) to Velocity Sporting Goods for payment in full of their invoice No. 34719 for goods received December 22.

I filled out a check for $15,800 to pay Velocity Sporting Goods (Original Invoice was for $17,680, but we did not receive 20 units on our order and with the 3 way match it brought the total to $15,800), marked the invoice as "PAID," and credited and debited the Accounts Payable Subsidiary Ledger. What do I do on the Cash Disbursements Journal?

Answer 1

Cash Disbursement Journal Appears like this Other Accounts - Account Debite PR Cash - Cr. Inventory - Cr. Dr. Accounts Payable-Dr. Date Check No. Payee So, you have to do following things to complete entry in Caash Disbursement Journal 1. Enter Date of payment or date of Check in the Date Column. 2. Enter Check No. in Check Number Column. 3. Enter Name of Supplier or Payee Name as entered in Check(name to whome Check issued) 4. Enter Name of Account as per Accounts Payable Subsidiary Ledger. 5. Enter Post Reference Number "PR Number" in PR Column. 6. Enter Amount as per check in the "Cash - Cr." Column. 7. "Inventory Cr." Column is used to enter purchase discounts , returns. 8. Other Accounts - Dr. is used for multiple or other adjustments. 9. Accounts Payable Column shall be debited with the accounts payable.