Transcript Chapter 12 Posting to General and Subsidiary Ledgers

Chapter 12
Posting to General and
Subsidiary Ledgers
OBJECTIVES:
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Define accounting terms relating to posting to ledgers
Identify accounting practices related to posting to
ledgers
Post from a purchase journal to an accounts payable
ledger
Post from a cash payments journal and general journal
to an accounts payable ledger
Post from a sales journal to an accounts receivable
ledger
Post from a cash receipts journal to an accounts
receivable ledger
Post from a cash payments journal and a general journal
to a general ledger
Post journal totals to a general ledger
Subsidiary Ledgers, p. 272
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. Omni keeps a separate ledger for
vendors and a separate ledger for customer. Each separate
ledger is summarized in a single general ledger account. A
ledger that is summarized in a single general ledger account
is called a subsidiary ledger. A subsidiary ledger containing
only accounts for vendors from whom items are purchased
or bought on account is called an accounts payable ledger. A
subsidiary ledger containing only accounts for charge
customers is called an A/R ledger. Total amounts are
summarized in single general ledger accounts: A/P for
vendors and A/R for charge customers.
An account in a general ledger that summarizes all accounts in
a subsidiary ledger is called a controlling account.
Posting – look at CHART OF ACCOUNTS – pg 219
 Posting sorting and summarizing journal transactions into
individual ledger accounts.
 The size of a business determines how many ledgers they
will have.
GENERAL LEDGER:
– This ledger contains all the accounts necessary to prepare
the financial statements.
– Contains a controlling account for each subsidiary ledger.
CONTROLLING ACCOUNT: account in general ledger that
summarizes all accounts of the corresponding subsidiary
ledger
– Balance equals total of all account balances in its related
subsidiary ledger
– Ex) Accounts Payable and Accounts Receivable
SUBSIDIARY LEDGER
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A set of ledger accounts that are summarized in a
single general ledger controlling account
 Gives the details of a general ledger account.
– Business needs to know the amount owed to each
vendor + amount that needs to be collected from
each charge customer
– Separate account is needed for each vendor and
each charge customer
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Accounts Payable Ledger - contains an account
for each vendor from whom items are purchased
ON ACCOUNT.
 Accounts Receivable Ledger - contains an
account for each CHARGE customer.
Ch 12-1: Posting to an Accounts Payable Ledger
 Accounts Payable in the GL Controlling account
 3 digit numbers:
 Account numbers all start with 2 –Liability
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– 2nd two numbers – vendor number
Number assignment method is same as Encore
Vendors are arranged alphabetically in the ledger.
Accounts have a normal CREDIT balance
Procedure for adding new accounts is the same as
previously used.
3-column form with CREDIT balance column
ACCOUNTS PAYABLE LEDGER AND GENERAL
LEDGER CONTROLLING ACCOUNT
Total of all vendor account balances in the Accounts
Payable Ledger must equal balance of Accounts Payable
Account in general ledger (controlling account).
STARTING A NEW PAGE FOR A VENDOR IN AN
ACCOUNTS PAYABLE LEDGER
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TO OPEN: 1. Write the vendor’s name on the account title.
2. Assign the account a number.
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1. Write the vendor name.
2. Write the vendor number.
3. Write the date.
4. Write Balance. (carried over from last month/page)
5. Place a check mark in the Post. Ref. column (not posted)
6. Write the account balance.
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Carrying Balances from Page to Page
 In a Journal, use ‘Carried Forward’
and ‘Brought Forward’
 In a ledger, use ‘Balance’
Posting from the Purchases Journal
 Post amounts individually to the Accounts Payable
Subsidiary Ledger  to individual vendors’ accounts
(very often).
– Vendor subsidiary ledger CREDIT
 Post column TOTALS to general ledger, controlling
account (at of end of month).
– Purchases - DEBIT
– Accounts Payable - CREDIT
Steps in Posting to Ledger
1. Write the date in the date column
2. Write the journal page in the Post
Ref. Column of the account.
3. Write the credit or debit amount.
4. Find the new credit balance of the
account.
5. Write the vendor number in the Post
Ref column of the journal.
POSTING FROM A PURCHASES JOURNAL TO AN
ACCOUNTS PAYABLE LEDGER
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1. Write the date.
2. Write the journal page number.
3. Write the credit amount.
4. Calculate and write the new account balance.
5. Write the vendor number.
Lesson 12-1, page 276
TERMS REVIEW
subsidiary ledger
accounts payable ledger
accounts receivable ledger
controlling account
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TO DO:
Work Together, page 277
On your own, page 277
Lesson 12-1, page 277
Chapter 12-2
Posting from Other
Journals to an
Accounts Payable
Ledger
Posting from the Cash Payments Journal
 Post individually - OFTEN
– General Debit and Credit Columns to General Ledger
– Accounts Payable DEBIT Column to vendor’s
subsidiary ledger accounts
 Post Totals – END OF MONTH
– Accounts Payable Column TOTAL to Accounts
Payable Account as Debit.
– Cash Column TOTAL to Cash Account as Credit.
POSTING FROM A CASH PAYMENTS JOURNAL TO AN
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
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5
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1. Date
2. Journal Page Number
3. Debit
4. Account Balance
5. Vendor Number
Lesson 12-2, page 278
POSTING FROM A CREDIT ENTRY FROM A GENERAL
JOURNAL TO AN ACCOUNTS PAYABLE LEDGER
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5
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1. Date
2. Journal Page Number
3. Credit
****Each transaction is posted
4. Account Balance
individually****
5. Vendor Number
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Completed Accounts Payable Ledger PAGE 280
 All vendor accounts make up complete Accounts
Payable Ledger
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After each Acct. Pay. ledger has been posted for
the month, the credit balance in each vendor acct
represents the amount the business owes each
vendor
How much is owed to vendor # 230?
To Foxfire Supply?
How much has Omni paid to African Importers?
When did Omni make a payment to vendor no.
240?
PROVING THE ACCOUNTS PAYABLE LEDGER
Schedule of Accounts Payable:
*List all vendors account names and balances.
*The total must equal the Accounts Payable
account in general ledger controlling account
Lesson 12-2, page 281
TERMS REVIEW
schedule of accounts payable
TO DO:
Work Together, pg 282
On your own, pg 282
Lesson 12-2, page 282
CHAPTER 12-3
Posting to an Accounts
Receivable Ledger
Accounts Receivable Subsidiary Ledger
 Controlling account is Accounts Receivable
 Account numbers all start with 1- Assets
 Customers are arranged alphabetically in the
ledger.
 Accounts have a normal DEBIT balance.
 Total of Accounts Receivable Ledger must
equal balance of Accounts Receivable
Account in the general ledger (controlling
account).
ACCOUNTS RECEIVABLE LEDGER AND GENERAL
LEDGER CONTROLLING ACCOUNT
Total amount to be collected from all charge
customers is summarized in a single general ledger
account, Accounts Receivable
Lesson 12-3, page 283
OPENING ACCOUNTS RECEIVABLE LEDGER FORMS
1. Customer Name
2. Customer Number
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2
*3-column form with DEBIT balance column
Lesson 12-3, page 284
Posting from Sales Journal
 Post amounts individually to each customer’s
account in subsidiary ledger OFTEN
 Post Column Totals  End of month
– Accounts Receivable column total to General
Ledger Accounts Receivable Account as debit.
(controlling account)
– Sales and Sales Taxes Payable column totals to
General Ledger accounts as credit.
POSTING FROM A SALES JOURNAL TO AN
ACCOUNTS RECEIVABLE LEDGER
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1. Write the date.
2. Write the journal page number.
3. Write the debit amount.
4. Calculate and write the new account balance.
5. Write the customer number.
Lesson 12-3, page 285
TO DO:
 Work Together, pg 286
 On your own, pg 286
 App 12-1, 12-2, 12-3
REVIEW:
 What accounts are contained in an accounts
payable ledger?
 What is the relationship between a controlling
account and a subsidiary ledger?
 What is the title of the balance amount column of
an accounts payable ledger form?
 In which column of the cash payments journal are
the amounts that are posted individually to the
accounts payable ledger?
CHAPTER 12-4
Additional Posting to an
Accounts Receivable
Ledger
Posting from Cash Receipts Journal
 Post individually - OFTEN
– General Debit and Credit Columns to General
Ledger.
– Accounts Receivable Credit Column to customer
accounts as credit.
 Post Totals – END OF MONTH
– Accounts Receivable, Sales, and Sales Taxes
Payable Column TOTALS to General Ledger
Accounts Credit.
– Cash Column TOTAL to Cash Account as Debit.
POSTING FROM A CASH RECEIPTS JOURNAL TO AN
ACCOUNTS RECEIVABLE LEDGER
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1. Date
2. Journal Page Number
3. Credit
4. Account Balance
5. Customer Number
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Lesson 12-4, page 287
Completed Accounts Receivable Ledger – pg 288
 DEBIT amount = TOTAL Amount owed to business
 How much is owed by customer # 160?
 How many pymts has Children’s Paradise made?
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Schedule of accounts receivable – pg 289
– Listing of all customer accounts, account balances,
and total amount due from all customers
– Prepared after all entries are posted
– Total of balances = Accounts Receivable, general
ledger account (controlling account)
PROVING THE ACCOUNTS RECEIVABLE LEDGER
Schedule of Accounts Receivable:
*Proves the accuracy of the accounts receivable
subsidiary ledger.
*The total of this statement must match balance of
Accounts Receivable account in general ledger.
Lesson 12-4, page 289
TERMS REVIEW
schedule of accounts receivable
TO DO:
Work Together, pg 290
On your Own, pg 290
App 12-4
Lesson 12-4, page 290
Posting from JOURNALS to LEDGERS:
 Cash Payments
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– Accounts Payable ledger
– General Ledger
Cash Receipts
– Accounts Receivable ledger
– General ledger
Purchases
– Accounts Payable ledger
– General ledger
Sales
– Accounts Receivable ledger
– General ledger
General
– General Ledger
– Accounts Payable ledger
CHAPTER 12-5: Posting from Journals to a General Ledger
 FROM SPECIAL JOURNALS
– Individual General amount DR and CR columns
– MONTHLY TOTAL Cash DR/CR
– MONTHLY TOTAL Sales Tax Payable
– MONTHLY TOTAL Sales CR
– MONTHLY TOTAL Purchases DR
– MONTHLY TOTAL Accounts Receivable/Payable DR/CR
 FROM GENERAL JOURNAL
– Individual DR and CR columns
 Omni uses 4-column general ledger form
– DR, CR, DR balance, CR balance
STARTING A NEW PAGE FOR AN ACCOUNT IN A
GENERAL LEDGER
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1. Write the account title.
2. Write the account number.
3. Write the date.
4. Write Balance.
5. Place a check mark in the Post. Ref. column.
6. Write the account balance.
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Lesson 12-5, page 291
POSTING FROM THE GENERAL AMOUNT COLUMNS OF
A CASH PAYMENTS JOURNAL TO A GENERAL LEDGER
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1. Write the date.
2. Write the journal page number.
3. Write the debit amount.
4. Calculate and write the new account balance.
5. Write the general ledger account number in
the Post. Ref. column of the journal.
Lesson 12-5, page 292
POSTING A DEBIT ENTRY FROM A GENERAL
JOURNAL TO A GENERAL LEDGER
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1. Write the date.
2. Write the journal page number.
3. Write the amount.
4. Calculate and write the new account balance.
5. Write the general ledger amount number in the
Post. Ref. column of the general journal.
Lesson 12-5, page 293
POSTING A CREDIT ENTRY FROM A GENERAL
JOURNAL TO A GENERAL LEDGER
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1. Write the date.
2. Write the general journal page number.
3. Write the amount.
4. Calculate and write the new account balance.
5. Write the general ledger account number.
Lesson 12-5, page 294
 TO DO:
 Work together, pg 295
 On your own, pg 295
CHAPTER 12-6
Posting Totals to a
General Ledger
Posting Totals of a Sales Journal to a General Ledger
 End of month Prove and Rule Post totals of
Special Amount Columns
 SALES journal:
 TOTAL:
– Acct Rec DR
– Sales CR
– Sales Tax Payable CR
POSTING TOTALS OF A SALES JOURNAL TO A
GENERAL LEDGER
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1. Date
2. Journal Page Number
3. Column Total
4. Account Balance
5. Account Number
*In parentheses
BELOW amount
column total
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Lesson 12-6, page 296
POSTING TOTALS OF A PURCHASES JOURNAL TO A
GENERAL LEDGER
 Purchases journal – one special amount column:
 Purchases DR; Accounts Payable CR
 Total and rule at end of each month
 Post to general journal in 2 general ledger
accounts
POSTING TOTALS OF A PURCHASES JOURNAL TO A
GENERAL LEDGER
2
1
1. Date
2. Journal Page Number
3. Column Total
4. Account Balance
5. Account Number
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Lesson 12-6, page 297
POSTING TOTALS OF THE SPECIAL AMOUNT
COLUMNS OF A CASH RECEIPTS JOURNAL TO A
GENERAL LEDGER
 Cash Receipts Journal: 4 special amount columns;
+ General DR and General CR
 Acct Rec CR - TOTALS
 Sales CR - TOTALS
 Sales Tax Payable CR - TOTALS
 Cash DR - TOTALS
 General DR/CR – INDIVIDUAL (check mark at bottom)
 Prove DR=CR, rule, at end of each month
 Post totals to individual general ledger accounts
POSTING TOTALS OF THE SPECIAL AMOUNT
COLUMNS OF A CASH RECEIPTS JOURNAL TO A
GENERAL LEDGER
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1. Date
2. Journal Page Number
3. Column Total
4. Account Balance
5. Account Number
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Lesson 12-6, page 298
POSTING TOTALS OF A CASH PAYMENTS JOURNAL
TO A GENERAL LEDGER
 Cash Payments Journal: 2 special amount columns
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+ General DR/CR
Account Payable DR - TOTALS
Cash CR - TOTALS
General DR/CR – INDIVIDUAL (Check mark)
TOTAL, Prove DR=CR, rule, at end of each month
Post TOTALS to individual general ledger accounts
POSTING TOTALS OF A CASH PAYMENTS JOURNAL
TO A GENERAL LEDGER – PG 298
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1. Date
2. Journal Page Number
3. Column Total
4. Account Balance
5. Account Number
Lesson 12-6, page 300
SUMMARY:
 Omni posts vendor and customer accounts periodically
throughout the month so that balance of subsidiary ledgers
are up to date
 Amounts in General Debit / Credit, Accounts Payable, and
Accounts Receivable need to be posted individually!
 Special Amount Columns Totals to be posted at end of
month
 Prove, Rule, and Post to General ledger at end of month
need to be brought up to date only when preparing financial
statements (before trial balance can be prepared)
Order of Posting Journals
1. Sales Journal
2. Purchases Journal
3. General Journal
4. Cash Receipts Journal
5. Cash Payments Journal
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**This order USUALLY puts amounts in correct
chronological order, but there may be exceptions
depending on how frequently items are posted
during the month***
TO DO:
 Work Together, pg 302
 On your own, pg 302
 App Problems 12-5, 12-6
 Ch 12 QUIZ – WEDNESDAY
 THURSDAY – Finish Summary
 Ch 12 TEST - FRIDAY