Basic Accounting

Special Journal

1. What is subsidiary ledger? Explain advantage of subsidiary ledger.
2. In July 2007 the following selected the following transaction. All purchase and sales were on account. The cost of all merchandise sold was 70% of sales price.
July 1 Purchase merchandise from D. company tk 7000
 2 Received freight bill from D company tk 400
 3 Made sales to L company tk 1300 and to Franklin Bros tk 1900
 5 Purchase merchandise from G company tk 3200
 8 Received credit on merchandise returned to G company tk 300
 13 Purchased store supplies from Brent supply tk 720
 15 Purchase merchandise from D company tk 3600 and R Company 2900
 16 Made sales to M company tk 3450 and Franklin brs tk 1570
 18 Received bill for advertising from marlin adversities tk 600
 21 Sales were made to E company tk 310 and P company tk 2300
 22 Granted allowance to E company for merchandise damaged in shipping tk 40
 24 Purchase merchandise from g company tk 3000
 26 Purchase equipment from G company tk 3000
 28 Received freight bill from G Company for July 24 tk 380
 30 Sales were made to m company tk 4900
Required:
A. journalizes the transaction above in a purchase journal and sales journal.
B. post the general and subsidiary ledger