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© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO10 Post cash payments to an accounts.

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Presentation on theme: "© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO10 Post cash payments to an accounts."— Presentation transcript:

1 © 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO10 Post cash payments to an accounts payable ledger and a general ledger.

2 © 2014 Cengage Learning. All Rights Reserved. Posting from a Cash Payments Journal to an Accounts Payable Ledger ●A credit limit is the maximum outstanding balance allowed to a customer by a vendor. SLIDE 2 LO10 Lesson 9-5

3 © 2014 Cengage Learning. All Rights Reserved. Posting from a Cash Payments Journal to an Accounts Payable Ledger SLIDE 3 LO10 Lesson Debit 1 1 Date 5 5 Vendor Number 2 2 Journal Page Number 4 4 Account Balance

4 © 2014 Cengage Learning. All Rights Reserved. Posting from the General Amount Columns of a Cash Payments Journal to a General Ledger SLIDE 4 LO10 Lesson Debit 1 1 Date 5 5 Vendor Number 2 2 Journal Page Number 4 4 Account Balance

5 © 2014 Cengage Learning. All Rights Reserved. Totaling, Proving, and Ruling a Cash Payments Journal SLIDE 5 LO10 Lesson Single Rule 1 1 Date 5 5 Double Rule 4 4 Column Total 2 2 “Totals”

6 © 2014 Cengage Learning. All Rights Reserved. Posting from the Special Amount Columns of a Cash Payments Journal to a General Ledger SLIDE 6 LO10 Lesson Debit or Credit Amount 1 1 Date Journal Page Number Account Balance Account Number

7 © 2014 Cengage Learning. All Rights Reserved. Completed Accounts Payable Ledger SLIDE 7 LO10 Lesson 9-5

8 © 2014 Cengage Learning. All Rights Reserved. Proving the Accounts Payable Ledger ●A listing of vendor accounts, account balances, and the total amount due to all vendors is called a schedule of accounts payable. SLIDE 8 LO10 Lesson 9-5

9 © 2014 Cengage Learning. All Rights Reserved. Lesson 9-5 Audit Your Understanding 1.In which column of the cash payments journal are the amounts that are posted individually to the accounts payable ledger? SLIDE 9 ANSWER Accounts Payable Debit Lesson 9-5

10 © 2014 Cengage Learning. All Rights Reserved. Lesson 9-5 Audit Your Understanding 2.List the five steps for ruling a cash payments journal at the end of the month. SLIDE 10 ANSWER 1.Rule a single line across all amount columns. 2.Write the date in the Date column. 3.Write Totals in the Account Title column. 4.Write each column total below the single line. 5.Rule a double line across all amount columns. Lesson 9-5

11 © 2014 Cengage Learning. All Rights Reserved. Lesson 9-5 Audit Your Understanding 3.What is the relationship between a controlling account and a subsidiary ledger? SLIDE 11 ANSWER A controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledger. Lesson 9-5


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