Chapter 12

1. Chapter 12 • Posting to General and Subsidiary Ledgers

2. 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

3. 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

4. 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

5. 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

6. 12.1 Review: p. 277 • Terms Review • Audit Your Understanding #1-3 • Work Together #4,5 • On Your Own #6,7

7. 12.2 Posting from other Journals

8. 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

9. 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 #

10. Proving A/P Ledger • Schedule of Accounts Payable- Listing of all vendor accounts and account balances with total amount due from ALL vendors

11. 12.2 Review: p.282 • Terms Review • Audit Your Understanding #1-2 • Work Together #3-5 • On Your Own #6-8

12. 12.3 Posting to Accounts Receivable Ledger

13. 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

14. A/R Ledger forms • Opening an A/R Ledger for Customer Accts • Customer Name • Customer #

15. 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

16. 12.3 Review: p. 286 • Audit Your Understanding #1-2 • Work Together #3-4 • On Your Own #5-6

17. 12.4 Additional Posting

18. 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

19. Proving A/R Ledger • Schedule of Accounts Receivable- a listing of customer accounts, account balances and total amount due from all customers

20. 12.4 Review: p. 290 • Terms Review • Audit Your Understanding #1-2 • Work Together #3-4 • On Your Own # 5-6

21. 12.5 Posting from journals to general ledger

22. 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)

23. Posting From Cash Payments • Each amount in the General Column of the Cash Payments Journal will be posted • Date, CP#, Debit amount, new Balance

24. General Journal • Posting a debit entry: • Date, G#, Debit amount, Calculate new Balance, Account # in Post Ref of GJ

25. 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 #

26. 12.5 Review p.295 • Audit Your Understanding #1-2 • Work Together #3-5 • On Your Own # 6-8

27. 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

28. 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

29. 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

30. 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

31. 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

32. 12.6 Review P. 302 • Audit Your Understanding # 1-2 • Work Together #3-6 • On Your Own #7-10

33. Chapter 12 Review • Application Problems 12.1-12.6