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CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 11-1
Posting to an Accounts
Payable Ledger
CENTURY 21 ACCOUNTING © Thomson/South-Western
Posting to an Accounts Payable Ledger
There are two (2) major differences between the
posting learned in this chapter (corporation) and the
posting learned in Part I (Sole Proprietorship):
1. In this chapter, posting will be made from several
special journals as well as the general journal
2. Posting will be made to two (2) subsidiary ledgers—
accounts payable ledger and accounts receivable
ledger
2
LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
Ledgers and Controlling Accounts
Hobby Shack’s general ledger chart of accounts (pg.
231) is large
Because of the business’s size and the number and
type of transactions, Hobby Shack also uses
additional ledgers in its accounting system
A business needs to know the amount owed each
vendor as well as the amount to be collected from
each charge customer
Therefore, a separate account is needed for each
vendor and each customer
3
LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
Ledgers and Controlling Accounts
Hobby Shack keeps a separate ledger for vendors
and a separate ledger for customers
Each separate ledger is summarized in a single
general ledger account is called a subsidiary ledger
A subsidiary ledger containing only accounts for
vendors from whom merchandise is purchased on
account or other items are bought on account is call
an Accounts Payable Ledger
A subsidiary ledger containing only accounts for
charge customers is called a Accounts Receivable
Ledger
4
LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
Ledgers and Controlling Accounts
Total amounts are summarized in a single general
ledger accounts:
Accounts Payable: for vendors
Accounts Receivable: for charge customers
An account in a general ledger that summarizes all
accounts in a subsidiary ledger is called a
Controlling Account
The balance of a controlling account equals the total of all
account balances in its related subsidiary ledger
5
LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
6
LESSON 11-1
ACCOUNTS PAYABLE LEDGER AND GENERAL
LEDGER CONTROLLING ACCOUNT page 299
Hobby Shack assigns a vendor number to each
account in the accounts payable ledger
The total of all vendor account
balances in the accounts payable
ledger equals the balance of the
controlling account, Accounts Payable
CENTURY 21 ACCOUNTING © Thomson/South-Western
7
LESSON 11-1
ACCOUNTS PAYABLE LEDGER FORMS
(opening an account)
1 2
3 4 5 6
page 300
1. Write the vendor name.
2. Write the vendor number.
3. Write the date.
4. Write the word Balance.
5. Place a check mark in the Post. Ref. column.
6. Write the balance.
***Accounts payable are liabilities and have
a normal credit balance; therefore, the Debit
balance column is usually not needed for the
accounts payable ledger accounts.
CENTURY 21 ACCOUNTING © Thomson/South-Western
POSTING FROM A PURCHASES JOURNAL
TO AN ACCOUNTS PAYABLE LEDGER
Each entry in the purchases journal affects
the account of the vendor named in the
Account Credited column
The amount on each line of a purchases
journal is posted as a credit to a vendor
account in the accounts payable ledger
Posting frequently to the accounts payable
ledger keeps each vendor account balance
up to date
8
LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
9
LESSON 11-1
POSTING FROM A PURCHASES JOURNAL
TO AN ACCOUNTS PAYABLE LEDGER page 301
1. Write the date.
2. Write the journal page number.
3. Write the credit amount.
4. Write the new account balance.
5. Write the vendor number.
1
2
3
4
5
CENTURY 21 ACCOUNTING © Thomson/South-Western
POSTING FROM A CASH PAYMENTS JOURNAL
TO AN ACCOUNTS PAYABLE LEDGER
Each entry in the Accounts Payable Debit column of
a cash payments journal affects a vendor account
Individual amounts in the Accounts Payable Debit
column are posted frequently to the proper vendor
account in the accounts payable ledger
Posting frequently keeps each vendor account
balance up to date
10
LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
11
LESSON 11-1
POSTING FROM A CASH PAYMENTS JOURNAL
TO AN ACCOUNTS PAYABLE LEDGER page 302
4. Subtract the amount in the Debit column from the previous balance in
the Credit column. Write the new balance.
1. Write the date.
5. Write the vendor number.
2. Write the journal
page number.
3. Write the debit
amount.
1 2 3
4
5
CENTURY 21 ACCOUNTING © Thomson/South-Western
POSTING A CREDIT ENTRY FROM A GENERAL
JOURNAL TO AN ACCOUNTS PAYABLE LEDGER
Entries in a general journal may affect account
balances in a general ledger and an accounts
payable ledger
For example:
Purchases Returns and Allowance
Buying supplies on account
Posting from a general journal to a general ledger will
be described more on pages 317-318 (11-3)
12
LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
13
LESSON 11-1
POSTING A CREDIT ENTRY FROM A GENERAL
JOURNAL TO AN ACCOUNTS PAYABLE
LEDGER page 303
1. Write the date.
2. Write the general journal
page number.
3. Write the amount.
4. Add the amount in the Credit column to
the previous balance in the Credit
Balance column. Write the new balance.
5. Write the vendor number.
1 3
5
4
2
CENTURY 21 ACCOUNTING © Thomson/South-Western
14
LESSON 11-1
POSTING A DEBIT ENTRY FROM A GENERAL
JOURNAL TO AN ACCOUNTS PAYABLE
LEDGER page 303
1. Write the date.
2. Write the general journal
page number.
3. Write the amount.
4. Add the amount in the Debit column to
the previous balance in the Debit
Balance column. Write the new balance.
5. Write the vendor number.
1
4
2 53
CENTURY 21 ACCOUNTING © Thomson/South-Western
15
LESSON 11-1
COMPLETED ACCOUNTS PAYABLE
LEDGER page 304
All vendor
accounts make up
the complete
accounts payable
ledger.
CENTURY 21 ACCOUNTING © Thomson/South-Western
PROVING THE ACCOUNTS PAYABLE
LEDGER
A controlling account balance in a general ledger
must equal the sum of all account balances in a
subsidiary ledger
A listing of vendor accounts, account balances, and
total amount due all vendors is called a Schedule of
Accounts Payable
A schedule of accounts payable is prepared after all
entries in a journal are posted
16
LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
17
LESSON 11-1
PROVING THE ACCOUNTS PAYABLE
LEDGER page 305
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 11-2
Posting to an Accounts
Receivable Ledger
CENTURY 21 ACCOUNTING © Thomson/South-Western
19
LESSON 11-2
ACCOUNTS RECEIVABLE LEDGER AND
GENERAL LEDGER CONTROLLING ACCOUNT page 307
Customers’ Accounts
CENTURY 21 ACCOUNTING © Thomson/South-Western
20
LESSON 11-2
ACCOUNTS RECEIVABLE LEDGER
FORMS page 308
1 Customer name 2 Customer number
Similar to the Accounts Payable Ledger
Accounts Receivable are ASSETS with a Normal Balance of Debit
CENTURY 21 ACCOUNTING © Thomson/South-Western
21
LESSON 11-2
POSTING FROM A SALES JOURNAL TO AN
ACCOUNTS RECEIVABLE LEDGER page 309
4. Add the amount in the Debit column to the
previous balance in the Debit Balance
column. Write the new account balance.
1. Write the date.
2. Write the sales journal
page number.
3. Write the debit amount. 5. Write the customer number.
4
2
53
1
CENTURY 21 ACCOUNTING © Thomson/South-Western
22
LESSON 11-2
POSTING FROM A CASH RECEIPTS JOURNAL
TO AN ACCOUNTS RECEIVABLE LEDGER page 310
4. Subtract the amount in the Credit column from the previous
balance in the Debit Balance column. Write the new balance.
2. Write the cash
receipts journal
page number.
5. Write the customer number.
3. Write the credit
amount.
1. Write the date.
4
1
2
3
5
CENTURY 21 ACCOUNTING © Thomson/South-Western
23
LESSON 11-2
1. Write the date.
POSTING A CREDIT ENTRY FROM A GENERAL
JOURNAL TO AN ACCOUNTS RECEIVABLE
LEDGER page 311
4
21 5
2. Write the general
journal page
number.
3. Write the amount.
4. Subtract the
amount in the
Credit column
from the previous
balance in the
Debit Balance
column. Write the
new balance.
5. Write the
customer number.
3
CENTURY 21 ACCOUNTING © Thomson/South-Western
24
LESSON 11-2
COMPLETED ACCOUNTS RECEIVABLE
LEDGER page 312
CENTURY 21 ACCOUNTING © Thomson/South-Western
25
LESSON 11-2
PROVING THE ACCOUNTS RECEIVABLE
LEDGER page 313
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 11-3
Posting from Journals to a
General Ledger
CENTURY 21 ACCOUNTING © Thomson/South-Western
27
LESSON 11-3
STARTING A NEW PAGE FOR AN
ACCOUNT IN A GENERAL LEDGER
1 2
3 4 5 6
page 315
1. Write the account title.
2. Write the account number.
3. Write the date.
4. Write the word Balance in the Item column.
5. Place a check mark in the Post. Ref. column.
6. Write the balance.
The number of entries that may be recorded on
each general ledger account form depends on the
number of lines provided.
When all lines have been used, a new page is
prepared.
CENTURY 21 ACCOUNTING © Thomson/South-Western
POSTING FROM THE GENERAL AMOUNT
COLUMNS OF A CASH PAYMENTS JOURNAL TO
A GENERAL LEDGER
Amounts in cash payments journal entries are
recorded in either general amount columns or special
amount columns
Each amount in the General columns of a cash
payments journal is posted individually to the general
ledger account written in the Account Title column
However, only the monthly total of each special
amount column is posted to a general ledger account
(11-4)
28
LESSON 11-3
CENTURY 21 ACCOUNTING © Thomson/South-Western
29
LESSON 11-3
POSTING FROM THE GENERAL AMOUNT
COLUMNS OF A CASH PAYMENTS JOURNAL TO
A GENERAL LEDGER page 316
4. Add the amount in the Debit column to the previous balance in the
Balance Debit column. Write the new balance.
5. Write the general ledger account number.
1. Write the date.
2. Write the journal
page number.
3. Write the debit
amount. 4
23
1 5
CENTURY 21 ACCOUNTING © Thomson/South-Western
30
LESSON 11-3
5. Write the
general ledger
account number.
POSTING A DEBIT ENTRY FROM A GENERAL
JOURNAL TO A GENERAL LEDGER page 317
4
2
3
51
1. Write the date.
2. Write the
general journal
page number.
3. Write the
amount.
4. Calculate and
write the new
account
balance.
CENTURY 21 ACCOUNTING © Thomson/South-Western
31
LESSON 11-3
5. Write the
general ledger
account number.
POSTING A CREDIT ENTRY FROM A GENERAL
JOURNAL TO A GENERAL LEDGER page 318
4
2
3
51
1. Write the date.
2. Write the
general journal
page number.
3. Write the
amount.
4. Calculate and
write the new
account
balance.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 11-4
Posting Special Journal
Totals to a General Ledger
CENTURY 21 ACCOUNTING © Thomson/South-Western
33
LESSON 11-4
5. In the sales journal,
write the general ledger
account number.
POSTING TOTALS OF A SALES JOURNAL
TO A GENERAL LEDGER page 320
5
5
5
1
1
1
2
2
2
3
3
3
4
4
4
4. For each account,
calculate and write the
new account balance.
1. Write the date.
2. Write the sales journal
page number.
3. For each column and
account, write the
column total.
CENTURY 21 ACCOUNTING © Thomson/South-Western
34
LESSON 11-4
1. Write the date.
POSTING THE TOTAL OF A PURCHASES
JOURNAL TO A GENERAL LEDGER page 321
4
41
1
3
3
5
5
2. Write the purchases
journal page number.
3. For each account,
write the purchases
journal column total.
4. For each account,
calculate and write
the new balance.
5. Write the purchases
general ledger
account number and
the accounts payable
general ledger
account number.2
2
CENTURY 21 ACCOUNTING © Thomson/South-Western
35
LESSON 11-4
POSTING SPECIAL AMOUNT COLUMN TOTALS
OF A CASH RECEIPTS JOURNAL TO A GENERAL
LEDGER page 322
5 5 5 5 5
4
44
4
4
1
11
1
1
2
22
2
2
3
33
3
3
1. Date
2. Journal page
number
3. Column total
4. Account balance
5. Account number
CENTURY 21 ACCOUNTING © Thomson/South-Western
36
LESSON 11-4
POSTING SPECIAL AMOUNT COLUMN TOTALS
OF A CASH PAYMENTS JOURNAL TO A GENERAL
LEDGER page 324
1. Date
2. Journal page number
3. Column total
4. Account balance
5. Account number2
2
2
3
3
3
4
4
4
5 5
5
1
1
1
CENTURY 21 ACCOUNTING © Thomson/South-Western
Order Of Posting From Special Journals
All items, including the totals of special columns,
must be posted before a trial balance is prepared
The journals should be posted in the following order:
1. Sales Journal
2. Purchases Journal
3. General Journal
4. Cash Receipts Journal
5. Cash Payments Journal
37
LESSON 11-4
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 11-5
Correcting Errors in
Subsidiary Ledger
Accounts
CENTURY 21 ACCOUNTING © Thomson/South-Western
39
LESSON 11-5
JOURNALIZING CORRECTING ENTRIES
AFFECTING CUSTOMER ACCOUNTS
1
2
3
4
5 6
page 327
December 10. Discovered that a sale on account to Cumberland
Center on December 3 was incorrectly charged to the account of
Country Crafters, $412.00. Memorandum No. 56.
1. Write the date. 5. Write the name of incorrectly
charged customer.2. Write the name of correct customer.
3. Write the memorandum number.
4. Write the amount.
6. Write the amount.
CENTURY 21 ACCOUNTING © Thomson/South-Western
40
LESSON 11-5
POSTING CORRECTING ENTRIES
AFFECTING CUSTOMER ACCOUNTS page 328
2
2
1
1
4
4
5
5
3
3
3. Write the amount.
2. Write the general
journal page number.
1. Write the date.
5. Write the appropriate
vendor number in the
Post. Ref. columns.
4. Calculate and write the
new account balances.
