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Chapter 12

Chapter 12. Posting to General and Subsidiary Ledgers. Things you need to know. General Ledger – has all of our accounts in it except for the accounts payable and accounts receivable vendors.

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Chapter 12

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  1. Chapter 12 Posting to General and Subsidiary Ledgers

  2. Things you need to know. • General Ledger – has all of our accounts in it except for the accounts payable and accounts receivable vendors. • Subsidiary Ledger – is a secondary ledger that keeps track of secondary accounts and reports the totals to the general ledger. This is where the vendors are kept track of….

  3. Subsidiary Ledger • Accounts Payable Ledger - This is a ledger (book of accounts ) that keeps track of all of the individual accounts that we owe money to. • Accounts Receivable Ledger – Keeps track of the individual accounts that owe us money.

  4. Controlling Account • The controlling account is a account in the general ledger that keeps track of the total of the subsidiary accounts.

  5. Accounts Payable Subsidiary Ledger 3816 900 996 2039 4147.20 7145.88 19044.08 Pacific Imports Total in the Subsidiary ledger Accounts. 3,816 Foxfire Supply 900 Embassy Office Supply General Ledger 996 Accounts Payable Account Balance 19044.08 Crown Ltd 2039 African Importers 4147.20 Accent Importers Controlling Account- keeps balance of the total of all of the accounts 7145.88

  6. How do we get all of those numbers to work out????? • Rules for posting from special journals • Special Amount columns (columns with account names on them) ONLY ONLY the totals are posted at the end of the month. • EXCEPT the Accounts Receivable and Accounts Payable/Receivable Columns • Totals are posted at the end of the month and individually throughout the month • General Amount columns are posted individually

  7. Posting from the Purchases Journal Nov 2 Crown Ltd. Purchased merchandise on account $2039, PO 83. 230 Accounts Payable Ledger

  8. Lets try another one…….. On October 7, paid cash to Pacific Imports $1050 check No. 294 260 What do we post?????

  9. We bought supplies on account from Foxfire Supplies $210 Memo 52 220 310 250 What do we post here? Everything!!!!!!!

  10. At the end of the month we create two financial sheets to make sure that everything is in balance with our payables and receivables This total should equal what the total in our controlling account is

  11. Lets review….. • What do we post individually??? • Any columns that have amounts under the accounts payable or receivable columns • Anything in the general journal or General amount columns. • Everything else is posted at the end of the month.

  12. What does all of that mean? Childrens Paradise bought merchandise on account $816 plus tax $48.96 Total $864.96 So what do we post in this transaction?

  13. Here is what we do at the end of the month…..

  14. (225) (410) (115) Now that we are at the end of the month we have to post…. What do we post Here? We are going to take the totals and post them into the general ledger!!!!!

  15. Rules that you have to know about posting….. • Post individually • Any amount that fall under general amount columns • Any amount that falls under a account rec/accounts pay column • Post totals • All of the special amount columns

  16. (225) (115) We now are at the end of the month and we need to finish posting the rest of the information… As we went along we posted info into the name of the companies account now we go into the general ledger and post to the rest of the accounts- Purchases account and accounts payable.

  17. (checkmark) (checkmark) (115) (225)

  18. Problems 1,2,3,4,5,6,7

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