Page 78 - Accounting Information Systems

CHAPT E R 2 Introduction to Transaction Processing 49

FI G U R E
2-9 GENERAL LEDGER

Cash ACCOUNT NO. 101

BALANCE
POST.
DATE ITEM DEBIT CREDIT
REF. DEBIT CREDIT
Sept. 10 S1 33 0 0 3300
15 S1 68 2 5 1 0125
Oct. 3 S1 40 0 0 1 4125
10 CD1 2 8 00 1 132 5

Accounts Receivable ACCOUNT NO. 102

BALANCE
POST.
DATE ITEM DEBIT CREDIT
REF. DEBIT CREDIT
Sept. 1 S1 14 0 0 1400
8 S1 26 0 5 4005
15 CR1 1 6 50 2355

Accounts Payable ACCOUNT NO. 201

BALANCE
POST.
DATE ITEM DEBIT CREDIT
REF. DEBIT CREDIT
Sept. 1 P1 2 0 5 0 0 2 0 5 0 0
10 CD1 28 0 0 17 7 0 0

reporting, but it is not useful for supporting daily business operations. For example, for financial reporting
purposes, the firm’s total accounts receivable value must be presented as a single figure in the balance
sheet. This value is obtained from the accounts receivable control account in the general ledger. To
actually collect the cash this asset represents, however, the firm must have certain detailed information
about the customers that this summary figure does not provide. It must know which customers owe
money, how much each customer owes, when the customer last made payment, when the next payment is
due, and so on. The accounts receivable subsidiary ledger contains these essential details.