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Accounts Payable Ledger and Controlling Account

Learn about the accounts payable ledger, subsidiary ledgers, and how to post entries accurately. Understand the importance of controlling accounts and how to prove the accuracy of the accounts payable ledger.

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Accounts Payable Ledger and Controlling Account

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  1. LESSON 11-1 Posting to an Accounts Payable Ledger

  2. ACCOUNTS PAYABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT page 299 AP is the controlling account for purchases from vendors. LESSON 11-1

  3. SUBSIDIARY LEDGERS • Def. – a ledger that contains a single ledger account. • Each vendor and customer is assigned an account number to increase ease of filing & locating acct. info. • 2 TYPES: • Accounts Payable Ledger - contains ONLY vendors • Controlling account – AP (in the general ledger) • Accounts Receivable Ledger – contains ONLY customers • Controlling account – AR (in the general ledger) • Controlling Account – an account in a general ledger that summarizes all accounts in a subsidiary ledger. • all vendor accounts must = balance of AP • All customer accounts must = balance of AR LESSON 11-1

  4. ACCOUNTS PAYABLE LEDGER FORMS page 300 1 2 3 4 5 6 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. LESSON 11-1

  5. 2 1 5 3 4 POSTING FROM A PURCHASES JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 301 1. Write the date. 2. Write the journal page number. 4. Write the new account balance. 3. Write the credit amount. 5. Write the vendor number. LESSON 11-1

  6. 5 1 2 3 4 POSTING FROM A CASH PAYMENTS JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 302 1. Write the date. 2. Write the journal page number. 3. Write the debit amount. 4. Subtract the amount in the Debit column from the previous balance in the Credit column. Write the new balance. 5. Write the vendor number. LESSON 11-1

  7. 1 3 2 5 4 POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 303 1. Write the date. 4. Add the amount in the Credit column to the previous balance in the Credit Balance column. Write the new balance. 2. Write the general journal page number. 3. Write the amount. 5. Write the vendor number. LESSON 11-1

  8. 1 5 2 3 4 POSTING A DEBIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 303 1. Write the date. 4. Subtract the amount in the Debit column to the previous balance in the Credit Balance column. Write the new balance. 2. Write the general journal page number. 3. Write the amount. 5. Write the vendor number. LESSON 11-1

  9. COMPLETED ACCOUNTS PAYABLE LEDGER page 304 LESSON 11-1

  10. PROVING THE ACCOUNTS PAYABLE LEDGER page 305 Is prepared AFTER all entries have been posted and new balances have been calculated for each vendor. Total should equal AP in the general ledger. LESSON 11-1

  11. TERMS REVIEW page 306 • subsidiary ledger • accounts payable ledger • accounts receivable ledger • controlling account • schedule of accounts payable LESSON 11-1

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