Chapter 12Posting to General and Subsidiary Ledgers

Ledgers and Controlling accounts

Subsidiary Ledgers-a ledger summarized in a single general ledger account

Accounts Payable Ledger- subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account

Accounts Receivable Ledger- subsidiary ledger contains only accounts for charge customers

Controlling Account- an account in a general ledger that summarizes all accounts in a subsidiary ledger. Balance will equal total of all accounts related

12.1 Posting to a/P ledger

A/P Ledger and G/L Controlling Account

In A/P Ledger- each account has a vendor number

Numbers are assigned like Encore Music

Alphabetical Order!

When balance changes in vendor account, controlling account (A/P) balance changes

A/P Ledger Forms

Open each account by writing the vendor name and account number in heading

Vendor name obtained and new account opened with first invoice from that vendor

Starting a new page:

vendor name, account number, date of first item

Carry the balance from the previous page by writing balance in the item column and amt in credit balance, write a check in Post Ref

Posting from Purchase Journals to a/p Ledger

Each entry in purchases journal affects account of the vendor named in Account Credited Column

Write the date, journal page # (use P for purchases)

Write the credit amount in the credit column and add to the previous credit balance

Write the vendor # in the Purchases Journal in Post Ref

12.1 Review: p. 277

Terms Review

Audit Your Understanding #1-3

Work Together #4,5

On Your Own #6,7

12.2 Posting from other Journals

Posting from a Cash Journal

Write the date, journal page # (use CP for Cash Payments)

Write the debit amount (carried fro A/P Debit Column)

Calculate new balance

Write vendor # in Cash Payments Journal- Post Ref

Posting a Credit Entry

Posting a credit entry from a general journal to an accounts payable ledger

EX: Bought store supplies on account

Date, General Journal pg#

Write credit amount (carried from credit col in GJ)

Calculate new balance

Write vendor #

Proving A/P Ledger

Schedule of Accounts Payable- Listing of all vendor accounts and account balances with total amount due from ALL vendors

12.2 Review: p.282

Terms Review

Audit Your Understanding #1-2

Work Together #3-5

On Your Own #6-8

12.3 Posting to Accounts Receivable Ledger

A/R Ledger and G/L Controlling Account

Omni assigns a customer # to all accounts in accounts receivable ledger

Total amount to be collected from all charge customers is summarized in the General Ledger Account: Accounts Receivable

A/R Ledger forms

Opening an A/R Ledger for Customer Accts

Customer Name

Customer #

Posting from the Sales Journal

Post from the Sales Journal to the A/R Ledger

Date, Sales Journal Page #(S) in Post Ref

Debit Amount (From A/R Debit Column in Sales Journal)

Calculate new balance

Record customer # in Sales Journal Post Ref

12.3 Review: p. 286

Audit Your Understanding #1-2

Work Together #3-4

On Your Own #5-6

12.4 Additional Posting

Posting From cash REceipts

Post from a cash receipts journal to an accounts receivable ledger

Date, Cash Receipts Journal Page # (CR)

Credit Amount (from A/R Credit Column in CR Journal)

Calculate new balance

Write customer # in Post Ref col of Cash Receipts Journal

Proving A/R Ledger

Schedule of Accounts Receivable- a listing of customer accounts, account balances and total amount due from all customers

12.4 Review: p. 290

Terms Review

Audit Your Understanding #1-2

Work Together #3-4

On Your Own # 5-6

12.5 Posting from journals to general ledger

Starting a new page

To Start a new page for a general ledger account (when there are no more lines left)

Write the heading (account title and #)

Write date and the balance (from the previous page)

Posting From Cash Payments

Each amount in the General Column of the Cash Payments Journal will be posted

Date, CP#, Debit amount, new Balance

General Journal

Posting a debit entry:

Date, G#, Debit amount, Calculate new Balance, Account # in Post Ref of GJ

Posting a credit

Post as normal

*******in the Post Ref column of the General Journal you will have two account numbers: Accounts payable AND Vendor #

12.5 Review p.295

Audit Your Understanding #1-2

Work Together #3-5

On Your Own # 6-8

12.6 Posting Totals

Posting Totals to a General Journal

Sales Journal

At the end of each month the sales journal is ruled and totaled (Ch 11)

These totals are posted to the ledger accounts(write acct # in parenthesis)

EX: A/R; Sales; Sales Tax

Posting totals

Purchases Journal

The Purchases Journal is totaled and ruled at the end of each month (Ch 10)

Totals of Purchases and A/P are posted to these two ledger accounts

Write account # in parenthesis below total columns

CAsh Receipts Journal

The Cash Receipts Journal is proved at the end of the month (ch 11)

The totals of each column are then posted to the general ledger accounts

Cash Payments Journal

At the end of each month, cash payments journal is proved. The totals in the general amount columns are NOT posted. Only columns with special journals

Place a check mark under the general columns

Write the account # in parentheses below the other columns after posting

Order of Posting

Items affecting customer or vendor accounts are posted throughout the month

Post special amount column totals monthly

Journals should be posted in the following order: Sales, Purchases, General, Cash Receipts, Cash Payments

12.6 Review P. 302

Audit Your Understanding # 1-2

Work Together #3-6

On Your Own #7-10

Chapter 12 Review

Application Problems 12.1-12.6