Term Definitions

1. Journal : A book of original entries. A book to record business transaction in a chronological manner.
2. Sales Journal : A specialized journal to record sales transactions (Sales invoices issued to customers)
3. Cash Receipt Journal : A specialized journal to record money and checks received from customers.
4. Purchase Journal : A specialized journal to record Purchase Invoices received from vendors/suppliers..
5. Cash Disbursement Journal : A specialized journal to record payments issued to vendors/suppliers
6. Purchase Commitment Journal : A specialized journal to record liabilities incurred by agreeing to buy. (purchase orders issued to vendor/suppliers.) Purchase Order Journal or PO Journal
7. Stock Receiving Journal : A specialized journal to record merchandises received from vendors/suppliers.
8. Sales Commitment Journal : A specialized journal to record liabilities incurred by agreeing to sell. (Sales orders received from customers) Sales Order Journal or SO Journal
9. Stock Transfer Journal : A specialized journal to record moving of merchandises between warehouses, locations, departments.
10. General Journal : A journal used to record miscellaneous transactions not suited for a specialized journal.
11. Ledger : A book used to record business transactions coming from a journal. Each page of the ledger is devoted to a specific account. An account book in which all final entries of the transactions of a business concern are recorded.
12. Posting : Copying a business transaction from a journal to two or more pages of the ledger.
13. General Ledger : An account book made of all the asset accounts, liability accounts, equity accounts, revenue accounts and expense accounts.
14. Subsidiary Ledger : A detail account book having a controling account in the General ledger.
15. Accounts Receivable Ledger : A subsidiary ledger keeping track of the transactions with customers. The total of amounts due by all the customers has to be equal to the amount of the receivable controlling account in the General Ledger.
16. Accounts Payable Ledger : A subsidiary ledger keeping track of the transactions with vendors/suppliers The total of amounts due to all the vendors has to be equal to the amount of the payable controlling account in the General Ledger.
17. Stocks Ledger : A subsidiary ledger keeping track of the value of the merchandises on hand. The total value of all the items on hand, has to be equal to the amount of the Stocks controlling account in the General Ledger.
18. Activity Ledger : A subsidiary ledger used for Activity Based Costing.
19. Project Ledger : A subsidiary ledger used for Project Based Costing.
20. Source of an entry : In the General Ledger, identification of the journal from which the entry is coming from.
21. To be continued ...