Lesson 25: Accounting for Purchases Transactions Using General Journal

What is the purpose of a general journal in accounting?
How does recording a transaction in the general journal differ from recording it in a specialized journal?
What are purchase returns and allowances, and why are they important in accounting?

general journal, memorandum, debit memorandum, purchases return, purchases allowance, merchandise return

CTE Business & Finance Technology

B. Accounting Principles: Identify and describe generally accepted accounting principles (GAAP/IFRS) and explain how the application of these principles impacts the recording of financial transactions and the preparation of financial statements.

9. Apply transactions for accounts payable and other short-term debt.

HS.CTE.2A - 2A. Recall and apply prior knowledge for intended purpose

The SAT measures student proficiency in math reading, language, and writing. With strong scores, accounting students set themselves up for successful entry into accounting and finance programs.

Description: the process of recording purchase returns and allowances, and the impact of these transactions on the accounts payable ledger and general ledger.


Purpose: To teach students how to handle and record purchase returns and allowances and to explain the process of updating the accounts payable ledger with transactions from the general journal.

DOK 1
List the key components of a general journal entry.
Identify the steps involved in posting transactions to the accounts payable ledger.

DOK 2
Summarize the process of accounting for purchase returns and allowances.

DOK 4:
Independent practice accounting concepts/transactions promote critical thinking and problem-solving in accounting. Helps identify areas where they excel or need improvement.

By understanding how to use a general journal and how to record and post transactions accurately, students learn how businesses track expenses, manage supplier relationships, and maintain financial health. This knowledge is essential for anyone who plans to work in business or finance

Might believe that purchase returns and allowances are recorded using the same accounts and methods as regular purchases

Sampling, modeling, one one instruction, Google classroom or Moodle. Paper or or online assignments, online instructional tools, videos, textbook or online textbook, excel real world application of information, Spanish version available for ELL students

Guided Notes worksheet

Guiding questions/term assignment

work together/on own assignment application or mastery working papers

Century 21, Accounting,  General Journal, 11th edition, online/paper edition.

Online working papers (Mindtap)

Microsoft Excel software

Online instructional tools