1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12-1 Posting to An Accounts Payable Ledger

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 10-1 TERMS REVIEW Subsidiary ledger A ledger that summarized in a single general ledger account Accounts payable ledger Subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account Accounts receivable ledger Subsidiary ledger containing only accounts for charge customers Controlling Account An account in the general ledger that summarizes all accounts in a subsidiary ledger page 287

3. CENTURY 21 ACCOUNTING © Thomson/South-Western ACCOUNTS PAYABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT 3 LESSON 11-2 3 CENTURY 21 ACCOUNTING © Thomson/South-Western ACCOUNTS PAYABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT page 299

4. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 11-2 4 CENTURY 21 ACCOUNTING © Thomson/South-Western ACCOUNTS PAYABLE LEDGER FORMS 12 3456 page 300 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.

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 11-2 5 CENTURY 21 ACCOUNTING © Thomson/South-Western POSTING FROM A PURCHASES JOURNAL TO AN ACCOUNTS PAYABLE LEDGER page 301 1.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. 1 2 3 4 5

6. CENTURY 21 ACCOUNTING © Thomson/South-Western Audit Understanding 1. What accounts are contained in the accounts payable ledger? Accounts for vendors from whom items are bought on account 2. What is the relationship between a controlling account and a subsidiary ledger? Balance of controlling account = total of all account balances in its related subsidiary ledger 3. What is the title of the balance amount column of and accounts payable ledger form? Credit Balance 6 LESSON 11-2

7. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12-2 Posting to An Accounts Payable Ledger

8. CENTURY 21 ACCOUNTING © Thomson/South-Western Terms Review and Audit Understanding Schedule of accounts payable A list of vendor accounts, balances, and total due 1.In which column of the cash payments journal are the amounts that are posted individually to the accounts payable ledger? Accounts Payable debit column 2.What accounts are listed on a schedule of accounts payable? Vendor Accounts 8 LESSON 11-2

9. CENTURY 21 ACCOUNTING © Thomson/South-Western 9 LESSON 11-2CENTURY 21 ACCOUNTING © Thomson/South-Western POSTING FROM A CASH PAYMENTS JOURNAL TO AN ACCOUNTS PAYABLE LEDGER 4.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. 1 2 3 4 5

10. CENTURY 21 ACCOUNTING © Thomson/South-Western 10 LESSON 11-2 CENTURY 21 ACCOUNTING © Thomson/South-Western POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER 1.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. 1 3 5 4 2

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

12. CENTURY 21 ACCOUNTING © Thomson/South-Western 12 LESSON 11-2 12 CENTURY 21 ACCOUNTING © Thomson/South-Western COMPLETED ACCOUNTS PAYABLE LEDGER page 304

13. CENTURY 21 ACCOUNTING © Thomson/South-Western 13 LESSON 11-2 13 CENTURY 21 ACCOUNTING © Thomson/South-Western PROVING THE ACCOUNTS PAYABLE LEDGER page 305

14. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12-3 Posting to an Accounts Receivable Ledger

15. CENTURY 21 ACCOUNTING © Thomson/South-Western 15 LESSON 11-2 ACCOUNTS RECEIVABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT page 307

16. CENTURY 21 ACCOUNTING © Thomson/South-Western 16 LESSON 11-2 ACCOUNTS RECEIVABLE LEDGER FORMS page 308 1 Customer name2 Customer number

17. CENTURY 21 ACCOUNTING © Thomson/South-Western 17 LESSON 11-2 POSTING FROM A SALES JOURNAL TO AN ACCOUNTS RECEIVABLE LEDGER page 309 4.Add the amount in the Debit column to the previous balance in the Debit Balance column. Write the new account balance. 1.Write the date. 2.Write the sales journal page number. 3.Write the debit amount. 5.Write the customer number. 4 2 5 3 1

18. CENTURY 21 ACCOUNTING © Thomson/South-Western Audit Your Understanding 1.What accounts are contained in an accounts receivable ledger? Customer Accounts 2.To which accounts are the separate amounts in the sales journal posted individually? Customer accounts list in the account debited column 18 LESSON 11-2

19. CENTURY 21 ACCOUNTING © Thomson/South-Western Lesson 12-4 Additional Posting to an Accounts Receivable Ledger 19 LESSON 11-2

20. CENTURY 21 ACCOUNTING © Thomson/South-Western Terms Schedule of Accounts Receivable Listing of customer accounts, balances, and total amount due 20 LESSON 11-2

21. CENTURY 21 ACCOUNTING © Thomson/South-Western 21 LESSON 11-2 POSTING FROM A CASH RECEIPTS JOURNAL TO AN ACCOUNTS RECEIVABLE LEDGER page 310 4.Subtract the amount in the Credit column from the previous balance in the Debit Balance column. Write the new balance. 2.Write the cash receipts journal page number. 5.Write the customer number. 3.Write the credit amount. 1.Write the date. 4 1 2 3 5

22. CENTURY 21 ACCOUNTING © Thomson/South-Western 22 LESSON 11-2 1.Write the date. POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS RECEIVABLE LEDGER page 311 4 2 1 5 2.Write the general journal page number. 3.Write the amount. 4.Subtract the amount in the Credit column from the previous balance in the Debit Balance column. Write the new balance. 5.Write the customer number. 3

23. CENTURY 21 ACCOUNTING © Thomson/South-Western 23 LESSON 11-2 COMPLETED ACCOUNTS RECEIVABLE LEDGER page 312

24. CENTURY 21 ACCOUNTING © Thomson/South-Western 24 LESSON 11-2 PROVING THE ACCOUNTS RECEIVABLE LEDGER page 313

25. CENTURY 21 ACCOUNTING © Thomson/South-Western 25 LESSON 11-2 Audit Understanding 12-4 1.In which column of the cash receipts journal are the amounts that are posted individually to the accounts receivable ledger? Accounts Receivable Credit Column 2.What accounts are listed on a schedule of accounts receivable? 1.All customers accounts that have balances page 314

26. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12-5 Posting from Journals to a General Ledger

27. CENTURY 21 ACCOUNTING © Thomson/South-Western 27 LESSON 11-2 STARTING A NEW PAGE FOR AN ACCOUNT IN A GENERAL LEDGER 12 3456 page 315 1. Write the account title. 2. Write the account number. 3. Write the date. 4. Write the word Balance in the Item column. 5. Place a check mark in the Post. Ref. column. 6. Write the balance.

28. CENTURY 21 ACCOUNTING © Thomson/South-Western 28 LESSON 11-2 POSTING FROM THE GENERAL AMOUNT COLUMNS OF A CASH PAYMENTS JOURNAL TO A GENERAL LEDGER page 316 4.Add the amount in the Debit column to the previous balance in the Balance Debit column. Write the new balance. 5.Write the general ledger account number. 1.Write the date. 2.Write the journal page number. 3.Write the debit amount. 4 2 3 1 5

29. CENTURY 21 ACCOUNTING © Thomson/South-Western 29 LESSON 11-2 5.Write the general ledger account number. POSTING A DEBIT ENTRY FROM A GENERAL JOURNAL TO A GENERAL LEDGER page 317 4 2 3 5 1 1.Write the date. 2.Write the general journal page number. 3.Write the amount. 4.Calculate and write the new account balance.

30. CENTURY 21 ACCOUNTING © Thomson/South-Western 30 LESSON 11-2 5.Write the general ledger account number. POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO A GENERAL LEDGER page 318 4 2 3 5 1 1.Write the date. 2.Write the general journal page number. 3.Write the amount. 4.Calculate and write the new account balance.

31. CENTURY 21 ACCOUNTING © Thomson/South-Western Audit Understanding 12-5 1.Which amounts in a general journal are posted individually? Amounts in the Debit and Credit columns 2.List the five steps for posting to a general ledger account. write the date, write the journal page in the post ref column of the account, write the amount in the debit or credit column of the account, calculate and write the new account balance in the balance debit or balance credit column, write the general ledger account number in the post ref column on the general journal. 31 LESSON 11-2

32. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12-6 Posting Totals to a General Ledger

33. CENTURY 21 ACCOUNTING © Thomson/South-Western 33 LESSON 11-2 5.In the sales journal, write the general ledger account number. POSTING TOTALS OF A SALES JOURNAL TO A GENERAL LEDGER page 320 5 5 5 1 1 1 2 2 2 3 3 3 4 4 4 4.For each account, calculate and write the new account balance. 1.Write the date. 2.Write the sales journal page number. 3.For each column and account, write the column total.

34. CENTURY 21 ACCOUNTING © Thomson/South-Western 34 LESSON 11-2 1.Write the date. POSTING THE TOTAL OF A PURCHASES JOURNAL TO A GENERAL LEDGER page 321 4 4 1 1 3 3 5 5 2.Write the purchases journal page number. 3.For each account, write the purchases journal column total. 4.For each account, calculate and write the new balance. 5.Write the purchases general ledger account number and the accounts payable general ledger account number. 2 2

35. CENTURY 21 ACCOUNTING © Thomson/South-Western 35 LESSON 11-2 POSTING SPECIAL AMOUNT COLUMN TOTALS OF A CASH RECEIPTS JOURNAL TO A GENERAL LEDGER page 322 55555 4 4 4 4 4 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 1.Date 2.Journal page number 3.Column total 4.Account balance 5.Account number

36. CENTURY 21 ACCOUNTING © Thomson/South-Western 36 LESSON 11-2 POSTING SPECIAL AMOUNT COLUMN TOTALS OF A CASH PAYMENTS JOURNAL TO A GENERAL LEDGER page 324 1.Date 2.Journal page number 3.Column total 4.Account balance 5.Account number 2 2 2 3 3 3 4 4 4 55 5 1 1 1

37. CENTURY 21 ACCOUNTING © Thomson/South-Western Audit Understanding 12-6 1.For which columns of a special journal are the column totals posted to the general ledger? Each special amount column. 2.In what order should special journals be posted to the general ledger? (1) Sales Journal (2) purchase journal, (3) general journal, (4) cash receipts journal, (5) cash payments journal. 37 LESSON 11-2

38. CENTURY 21 ACCOUNTING © Thomson/South-Western Extra Information Correcting Errors in Subsidiary Ledger Accounts

39. CENTURY 21 ACCOUNTING © Thomson/South-Western 39 LESSON 11-2 JOURNALIZING CORRECTING ENTRIES AFFECTING CUSTOMER ACCOUNTS 1 2 3 4 56 page 327 December 10. Discovered that a sale on account to Cumberland Center on December 3 was incorrectly charged to the account of Country Crafters, $412.00. Memorandum No. 56. 1.Write the date. 5.Write the name of incorrectly charged customer. 2.Write the name of correct customer. 3.Write the memorandum number. 4.Write the amount. 6.Write the amount.