Chapter 7

ACCOUNTING INFORMATION SYSTEMS

PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W. Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
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COMPONENTS OF ACCOUNTING SYSTEMS

Increasingly, source documents are
electronic files creating a “paperless”
system.

•Keyboards •Hardware
•Scanners •Software
•Modems •Professional Judgment
•Bar-Code Reader
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COMPONENTS OF ACCOUNTING SYSTEMS

•Printer
•Monitor
•Projectors
•Web communications

•CD/DVD
•Hard Drive
•Tape
•Paper Document
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SPECIAL JOURNALS IN ACCOUNTING

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SUBSIDIARY LEDGERS
Controlling
Characteristic Subsidiary Ledger
Account

Amounts due Accounts Accounts Receivable

from customers Receivable Ledger
Amounts owed Accounts Accounts Payable
to creditors Payable Ledger

Subsidiary ledgers are a listing of individual

accounts with common characteristics.
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ACCOUNTS RECEIVABLE LEDGER

After all items are posted, the balance in the accounts receivable controlling account is
equal to the sum of the balances in the accounts receivable subsidiary ledger.
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SALES JOURNAL
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PROVING THE LEDGERS

A schedule of
accounts receivable
lists each customer
and the balance
owed.

The balance of the Accounts Receivable controlling

account in the general ledger should equal the accounts
in the accounts receivable subsidiary ledger.
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SALES TAXES

Governmental agencies often

require sellers to collect sales
taxes from customers and to
periodically send these taxes
to the appropriate agency.
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Cash Receipts Types

1. Cash from credit
customers
2. Cash from cash
sales
3. Cash from other
sources
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FOOTING, CROSSFOOTING, AND POSTING

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PROVING THE LEDGER

A schedule of
accounts payable
lists each supplier
and the balance
owed to them.

The balance of the Accounts Payable controlling

account in the general ledger should equal the
accounts in the accounts payable subsidiary ledger.
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GENERAL JOURNAL TRANSACTIONS

Adjusting
Entries

Closing
Entries
Purchase
Returns &
Allowances
Sales
Returns &
Allowances
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END OF CHAPTER 7