Page 170 - Plant design and economics for chemical engineers

144 PLANT DESIGN AND ECONOMICS FOR CHEMICAL ENGINEERS

JOURNAL
Page 1
Dare
19- Analjsis f Debit Credit

April 3 Salaries 403 s 75 lo s
Cash 112 758 00
Payment of salaries for week ending
April 3
4 Rent 314 3c Kl
Cash 112 30000
Building rental for month of April
5 Cash 112 104 lo
Sales 201 104100
Product A to X Company as per
invoice No. 6839
8 Equipment 104 18C lo
Notes payable 521 180000
Equipment for plant-6’?,, 90day
note to Y Company
9 Purchases 608 t n
Z Company 842 88100
Tools on open account-Terms-30 I
days I

FIGURE 5-4
A typical journal page.
transaction in order to maintain the correct balance between assets and equi-
ties. This is known as double-entry bookkeeping.

The Journal

A typical example of a journal page is shown in Fig. 5-4. The date is indicated in
the first two columns. An analysis of the account affected by the particular
transaction is listed in the third column, with debits listed first and credits listed
below and offset to the right. A brief description of the item is included if
necessary. The amounts of the individual debit and credit entries are indicated
in the last two columns, with debits always shown on the left. When the journal
entry is posted in the ledger, the number of the ledger account or the page
number is entered in the fourth column of the journal page. This column is
usually designated by “F” for “Folio.”

The Ledger
Separate ledger accounts may be kept for various items, such as cash, equip-
ment accounts receivable, inventory, accounts payable, and manufacturing ex-
pense. A typical ledger sheet is shown in Fig. 5-5. The ledger sheets serve as a
secondary record of business transactions and are used as the intermediates