LESSON 11-1 Posting to an Accounts Payable Ledger 4/28/2018 LESSON 11-1 Posting to an Accounts Payable Ledger Original created by M.C. McLaughlin, Thomson/South-Western Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School

Ledgers & Controlling Accounts A business needs to know the amount owed each vendor as well as the amount to be collected from each charge customer A ledger that is summarized in a single general ledger account is called a subsidiary ledger A subsidiary ledger containing only accounts for vendors from whom merchandise is purchased on account or other items are bought on account is called an accounts payable ledger A subsidiary ledger containing only accounts for charge customers is called an accounts receivable ledger An account in a general ledger that summarizes all accounts in a subsidiary ledger is called a controlling account LESSON 11-1

ACCOUNTS PAYABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT page 299 When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account, Accounts Payable, is also changed The total of all vendor account balances in the accounts payable ledger equals the balance of the controlling account, Accounts Payable A new account is opened by writing the vendors name and vendor number on the heading of the ledger account LESSON 11-1

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

POSTING FROM A PURCHASES JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 301 The amount on each line of a purchases journal is posted as a credit to a vendor account in the accounts payable ledger 2 1 3 5 4 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

POSTING FROM A CASH PAYMENTS JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 302 Each entry in the Accounts Payable Debit column of a cash payments journal affects a vendor account 2 1 5 3 1. Write the date. 2. Write the journal page number. 3. Write the debit amount. 4 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

POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 303 Entries in a general journal may affect account balances in a general ledger & an accounts payable ledger 2 1 5 3 4 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

POSTING A DEBIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 303 2 1 3 5 4 1. Write the date. 4. Add the amount in the Debit column to the previous balance in the Debit 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

COMPLETED ACCOUNTS PAYABLE LEDGER page 304 All vendor accounts make up the complete accounts payable ledger After the Accounts Payable ledger has been posted for the month, the credit balance in each vendor account represents the amount the business owes each vendor LESSON 11-1

PROVING THE ACCOUNTS PAYABLE LEDGER page 305 A controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledger A listing of vendor accounts, account balances, and total amount due all vendors is called a schedule of accounts payable A schedule of accounts payable is prepared after all entries in a journal are posted The total of the schedule of accounts payable balance must be the same as the A/P general ledger amount LESSON 11-1

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