CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 11-1 Posting to an Accounts Payable Ledger

CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 11-1 ACCOUNTS PAYABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT page 299 AP is the controlling account for purchases from vendors.

CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 11-1 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

CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 11-1 ACCOUNTS PAYABLE LEDGER FORMS page 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.

CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 11-1 POSTING FROM A PURCHASES JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page Write the date. 2.Write the journal page number. 3.Write the credit amount. 4.Write the new account balance. 5.Write the vendor number

CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 11-1 POSTING FROM A CASH PAYMENTS JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page Subtract the amount in the Debit column from the previous balance in the Credit column. Write the new balance. 1.Write the date. 5.Write the vendor number. 2.Write the journal page number. 3.Write the debit amount

CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 11-1 POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page Write the date. 2.Write the general journal page number. 3.Write the amount. 4.Add the amount in the Credit column to the previous balance in the Credit Balance column. Write the new balance. 5.Write the vendor number

CENTURY 21 ACCOUNTING © Thomson/South-Western 8 LESSON 11-1 POSTING A DEBIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page Write the date. 2.Write the general journal page number. 3.Write the amount. 4.Subtract the amount in the Debit column to the previous balance in the Credit Balance column. Write the new balance. 5.Write the vendor number

CENTURY 21 ACCOUNTING © Thomson/South-Western 9 LESSON 11-1 COMPLETED ACCOUNTS PAYABLE LEDGER page 304

CENTURY 21 ACCOUNTING © Thomson/South-Western 10 LESSON 11-1 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.

CENTURY 21 ACCOUNTING © Thomson/South-Western 11 LESSON 11-1 TERMS REVIEW subsidiary ledger accounts payable ledger accounts receivable ledger controlling account schedule of accounts payable page 306