Part (a)

General Journal
Date	Account Titles and Explanation		Ref.	Debit	Credit
1997
Sep. 15	Supplies		1 09	250
	Accounts Payable		204		2 50
	To record of supplies on account.
Part (b) General Ledger
Account Name: Supplies
Date	Explanation	Ref.	Debit	Credit	Balance
1997
Aug. 12		GJ1	300		300
Aug. 31		GJ2		275	25
Sep. 15		GJ3	250		275
Account Name: Accounts Payable
Date	Explanation	Ref.	Debit	Credit	Balance
1997
Aug. 10		GJ1		500	500
Aug. 20		GJ1	500		-0-
Sep. 15		GJ3		250	250

II. Re-read the text to find the answers to these questions.

1. What is the accounting cycle?

2. How are the general journal and the general ledger called?

3. When do accountants record accounting events?

4. Where are the accounts initially recorded?

5. Why are the preparer’s initials helpful?

6. How are the accounts to be debited and the accounts to be credited listed?

7. What does a general ledger usually include?

8. What is the normal balance?

III. What meaning have the following word combinations in the text?

The accounting cycle, the general journal, the general ledger, debit and credit entries, accounting events, the date of the transaction, a brief explanation, the journal entry, cause and effect, accounts payable, the cumulative balance, the normal balance.

IV. Match the terms on the left with the statements on the right.

General journal General ledger 3. Debit 4.Credit 5. Accounting event 6. Accounting cycle

a) …is the record of all a company’s accounts. b) …is any amount entered on the left-hand side of an account. c) … is a chronological record of the accounting events which shows the debit and credit sides of each accounting event. d) … is a formal process by which companies record accounting information, transfer it to specific accounts, and assemble it in financial documents. e) … is an economic event that is specific to the entity and changes the entity’s rights or obligations. f) … is any amount entered on the right-hand side of an account.

V. Put a word combination in the correct place to complete the following sentences.

specific accounts, the books of the business, accounting events, debit and credit entries, the general ledger, a positive balance

1. After a company records accounting information it is transferred to …

2. The general journal and the general ledger are called …

3. The general journal is a chronological record of …

4. There are two separate columns for the amount of…

5. The role of … is to show the resulting balance of accounts needed for the preparation of reports.

6. The normal balance of any account is …, a debit balance, indicating that cumulative debit entries to that account exceed cumulative credit entries.