Summarize the sales, purchase, and cash journals; balance the cash book.
In summarizing the sales journal, first total each column and draw a horizontal line under these amounts. On the next line record the summary entry, entering the amounts to be debited in the first money column and those to be credited in the second. The total of the partners’ withdrawals should not be posted, for they have already been transferred to the general ledger accounts at the time they occurred. The amount will therefore be checked in the summary entry. The total cash sales will also be checked, inasmuch as these have already been recorded in the cash book. The summary entry for the sales journal will appear as follows:
| Accounts Receivable, Dr. | . . . . . . . . | ||
| Partners’ Personal, Dr. | ✔ | . . . . . . . . | |
| Cash, Dr. | ✔ | . . . . . . . . | |
| Sales, Cr. | . . . . . . . . | ||
The purchase journal should be summarized somewhat similarly but the total purchases are to be debited to “Purchases,” the purchases on account credited to “Accounts Payable,” and the cash purchases are to be checked. The summary entry of this journal will be:
| Purchases, Dr. | |||
| Accounts Payable, Cr. | . . . . . . . . | ||
| Cash, Cr. | ✔ | . . . . . . . . | |
In summarizing the cash journals, pencil-foot all columns of both journals. Then formally foot the columns on both sides, using the same line on both sides, i.e., the totals must appear on one line extending across both pages of the book. This may leave blank lines on either side according as one has had more entries than the other. Underline the totals. Make summary entries somewhat as follows:
In the receipts journal:
| Cash | |||
| Sales Discount | |||
| Accounts Receivable | |||
| General | ✔ | ||
In the disbursements journal:
| General | ✔ | ||
| Accounts Payable | |||
| Purchase Discount | . . . . . . . . | ||
| Cash | . . . . . . . . | ||