1. Posting to General and Subsidiary Ledgers
Chapter 12
Posting to General and Subsidiary Ledgers

2. OBJECTIVES: Define accounting terms relating to posting to ledgers
Identify accounting practices related to posting to ledgers
Post from a purchase journal to an accounts payable ledger
Post from a cash payments journal and general journal to an accounts payable ledger
Post from a sales journal to an accounts receivable ledger
Post from a cash receipts journal to an accounts receivable ledger
Post from a cash payments journal and a general journal to a general ledger
Post journal totals to a general ledger

3. Subsidiary Ledgers, p. 272
A business needs to know the amount owed each vendor as well as the amount to be collected from each charge customer. Therefore, a separate account is needed for each vendor and each customer. Omni keeps a separate ledger for vendors and a separate ledger for customer. Each separate ledger is summarized in a single general ledger account. 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 items are purchased or bought on account is called an accounts payable ledger. A subsidiary ledger containing only accounts for charge customers is called an A/R ledger. Total amounts are summarized in single general ledger accounts: A/P for vendors and A/R for charge customers.
An account in a general ledger that summarizes all accounts in a subsidiary ledger is called a controlling account.

4. Posting – look at CHART OF ACCOUNTS – pg 219
Posting sorting and summarizing journal transactions into individual ledger accounts.
The size of a business determines how many ledgers they will have.
GENERAL LEDGER:
This ledger contains all the accounts necessary to prepare the financial statements.
Contains a controlling account for each subsidiary ledger.
CONTROLLING ACCOUNT: account in general ledger that summarizes all accounts of the corresponding subsidiary ledger
Balance equals total of all account balances in its related subsidiary ledger
Ex) Accounts Payable and Accounts Receivable

5. SUBSIDIARY LEDGER
A set of ledger accounts that are summarized in a single general ledger controlling account
Gives the details of a general ledger account.
Business needs to know the amount owed to each vendor + amount that needs to be collected from each charge customer
Separate account is needed for each vendor and each charge customer
Accounts Payable Ledger - contains an account for each vendor from whom items are purchased ON ACCOUNT.
Accounts Receivable Ledger - contains an account for each CHARGE customer.

6. Ch 12-1: Posting to an Accounts Payable Ledger
Accounts Payable in the GL Controlling account
3 digit numbers:
Account numbers all start with 2 –Liability
2nd two numbers – vendor number
Number assignment method is same as Encore
Vendors are arranged alphabetically in the ledger.
Accounts have a normal CREDIT balance
Procedure for adding new accounts is the same as previously used.
3-column form with CREDIT balance column

7. ACCOUNTS PAYABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT
Total of all vendor account balances in the Accounts Payable Ledger must equal balance of Accounts Payable Account in general ledger (controlling account).

8. STARTING A NEW PAGE FOR A VENDOR IN AN ACCOUNTS PAYABLE LEDGER2 1 3 4 5 6
TO OPEN: 1. Write the vendor’s name on the account title.
2. Assign the account a number.
********************************
1. Write the vendor name.
2. Write the vendor number.
3. Write the date.
4. Write Balance. (carried over from last month/page)
5. Place a check mark in the Post. Ref. column (not posted)
6. Write the account balance.

9. Carrying Balances from Page to Page
In a Journal, use ‘Carried Forward’ and ‘Brought Forward’
In a ledger, use ‘Balance’

10. Posting from the Purchases Journal
Post amounts individually to the Accounts Payable Subsidiary Ledger  to individual vendors’ accounts (very often).
Vendor subsidiary ledger CREDIT
Post column TOTALS to general ledger, controlling account (at of end of month).
Purchases - DEBIT
Accounts Payable - CREDIT

11. Steps in Posting to Ledger
Write the date in the date column
Write the journal page in the Post Ref. Column of the account.
Write the credit or debit amount.
Find the new credit balance of the account.
Write the vendor number in the Post Ref column of the journal.

12. POSTING FROM A PURCHASES JOURNAL TO AN ACCOUNTS PAYABLE LEDGER2 1 3 5 4
1. Write the date.
2. Write the journal page number.
3. Write the credit amount.
4. Calculate and write the new account balance.
5. Write the vendor number.
Lesson 12-1, page 276

13. TERMS REVIEW subsidiary ledger accounts payable ledger
accounts receivable ledger
controlling account
******************************
TO DO:
Work Together, page 277
On your own, page 277
Lesson 12-1, page 277

14. Posting from Other Journals to an Accounts Payable Ledger
Chapter 12-2
Posting from Other Journals to an Accounts Payable Ledger

15. Posting from the Cash Payments Journal
Post individually - OFTEN
General Debit and Credit Columns to General Ledger
Accounts Payable DEBIT Column to vendor’s subsidiary ledger accounts
Post Totals – END OF MONTH
Accounts Payable Column TOTAL to Accounts Payable Account as Debit.
Cash Column TOTAL to Cash Account as Credit.

16. POSTING FROM A CASH PAYMENTS JOURNAL TO AN ACCOUNTS PAYABLE SUBSIDIARY LEDGER2 1 3 5 4
1. Date
2. Journal Page Number
3. Debit
4. Account Balance
5. Vendor Number
Lesson 12-2, page 278

17. ****Each transaction is posted individually****
POSTING FROM A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER 2 1 5 3 4
1. Date
2. Journal Page Number
3. Credit
****Each transaction is posted individually****
4. Account Balance
5. Vendor Number

18. Completed Accounts Payable Ledger PAGE 280
All vendor accounts make up complete Accounts Payable Ledger
After each Acct. Pay. ledger has been posted for the month, the credit balance in each vendor acct represents the amount the business owes each vendor
How much is owed to vendor # 230?
To Foxfire Supply?
How much has Omni paid to African Importers?
When did Omni make a payment to vendor no. 240?

19. PROVING THE ACCOUNTS PAYABLE LEDGER
Schedule of Accounts Payable:
*List all vendors account names and balances.
*The total must equal the Accounts Payable account in general ledger controlling account
Lesson 12-2, page 281

20. TERMS REVIEW schedule of accounts payable TO DO: Work Together, pg 282
On your own, pg 282
Lesson 12-2, page 282

21. Posting to an Accounts Receivable Ledger
CHAPTER 12-3
Posting to an Accounts Receivable Ledger

22. Accounts Receivable Subsidiary Ledger
Controlling account is Accounts Receivable
Account numbers all start with 1- Assets
Customers are arranged alphabetically in the ledger.
Accounts have a normal DEBIT balance.
Total of Accounts Receivable Ledger must equal balance of Accounts Receivable Account in the general ledger (controlling account).

23. ACCOUNTS RECEIVABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT
Total amount to be collected from all charge customers is summarized in a single general ledger account, Accounts Receivable
Lesson 12-3, page 283

24. OPENING ACCOUNTS RECEIVABLE LEDGER FORMS
1. Customer Name 1
2. Customer Number 2
*3-column form with DEBIT balance column
Lesson 12-3, page 284

25. Posting from Sales Journal
Post amounts individually to each customer’s account in subsidiary ledger OFTEN
Post Column Totals  End of month
Accounts Receivable column total to General Ledger Accounts Receivable Account as debit. (controlling account)
Sales and Sales Taxes Payable column totals to General Ledger accounts as credit.

26. POSTING FROM A SALES JOURNAL TO AN ACCOUNTS RECEIVABLE LEDGER2 5 1 3 4
1. Write the date.
2. Write the journal page number.
3. Write the debit amount.
4. Calculate and write the new account balance.
5. Write the customer number.
Lesson 12-3, page 285

27. TO DO:
Work Together, pg 286
On your own, pg 286
App 12-1, 12-2, 12-3

28. REVIEW:
What accounts are contained in an accounts payable ledger?
What is the relationship between a controlling account and a subsidiary ledger?
What is the title of the balance amount column of an accounts payable ledger form?
In which column of the cash payments journal are the amounts that are posted individually to the accounts payable ledger?

29. Additional Posting to an Accounts Receivable Ledger
CHAPTER 12-4
Additional Posting to an Accounts Receivable Ledger

30. Posting from Cash Receipts Journal
Post individually - OFTEN
General Debit and Credit Columns to General Ledger.
Accounts Receivable Credit Column to customer accounts as credit.
Post Totals – END OF MONTH
Accounts Receivable, Sales, and Sales Taxes Payable Column TOTALS to General Ledger Accounts Credit.
Cash Column TOTAL to Cash Account as Debit.

31. POSTING FROM A CASH RECEIPTS JOURNAL TO AN ACCOUNTS RECEIVABLE LEDGER2 1 5 3 4
1. Date
2. Journal Page Number
3. Credit
4. Account Balance
5. Customer Number
Lesson 12-4, page 287

32. Completed Accounts Receivable Ledger – pg 288
DEBIT amount = TOTAL Amount owed to business
How much is owed by customer # 160?
How many pymts has Children’s Paradise made?
Schedule of accounts receivable – pg 289
Listing of all customer accounts, account balances, and total amount due from all customers
Prepared after all entries are posted
Total of balances = Accounts Receivable, general ledger account (controlling account)

33. PROVING THE ACCOUNTS RECEIVABLE LEDGER
Schedule of Accounts Receivable:
*Proves the accuracy of the accounts receivable subsidiary ledger.
*The total of this statement must match balance of Accounts Receivable account in general ledger.
Lesson 12-4, page 289

34. TERMS REVIEW schedule of accounts receivable TO DO:
Work Together, pg 290
On your Own, pg 290
App 12-4
Lesson 12-4, page 290

35. Posting from JOURNALS to LEDGERS:
Cash Payments
Accounts Payable ledger
General Ledger
Cash Receipts
Accounts Receivable ledger
General ledger
Purchases
Sales
General

36. CHAPTER 12-5: Posting from Journals to a General Ledger
FROM SPECIAL JOURNALS
Individual General amount DR and CR columns
MONTHLY TOTAL Cash DR/CR
MONTHLY TOTAL Sales Tax Payable
MONTHLY TOTAL Sales CR
MONTHLY TOTAL Purchases DR
MONTHLY TOTAL Accounts Receivable/Payable DR/CR
FROM GENERAL JOURNAL
Individual DR and CR columns
Omni uses 4-column general ledger form
DR, CR, DR balance, CR balance

37. STARTING A NEW PAGE FOR AN ACCOUNT IN A GENERAL LEDGER2 1 3 4 5 6
1. Write the account title.
2. Write the account number.
3. Write the date.
4. Write Balance.
5. Place a check mark in the Post. Ref. column.
6. Write the account balance.
Lesson 12-5, page 291

38. POSTING FROM THE GENERAL AMOUNT COLUMNS OF A CASH PAYMENTS JOURNAL TO A GENERAL LEDGER2 5 1 3 4
1. Write the date.
2. Write the journal page number.
3. Write the debit amount.
4. Calculate and write the new account balance.
5. Write the general ledger account number in the Post. Ref. column of the journal.
Lesson 12-5, page 292

39. POSTING A DEBIT ENTRY FROM A GENERAL JOURNAL TO A GENERAL LEDGER2 5 1 3 4
1. Write the date.
2. Write the journal page number.
3. Write the amount.
4. Calculate and write the new account balance.
5. Write the general ledger amount number in the Post. Ref. column of the general journal.
Lesson 12-5, page 293

40. POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO A GENERAL LEDGER2 1 5 3 4
1. Write the date.
2. Write the general journal page number.
3. Write the amount.
4. Calculate and write the new account balance.
5. Write the general ledger account number.
Lesson 12-5, page 294

41. TO DO:
Work together, pg 295
On your own, pg 295

42. Posting Totals to a General Ledger
CHAPTER 12-6
Posting Totals to a General Ledger

43. Posting Totals of a Sales Journal to a General Ledger
End of month Prove and Rule Post totals of Special Amount Columns
SALES journal:
TOTAL:
Acct Rec DR
Sales CR
Sales Tax Payable CR

44. POSTING TOTALS OF A SALES JOURNAL TO A GENERAL LEDGER2
1. Date
2. Journal Page Number 3
3. Column Total 1 5
4. Account Balance
Account Number
*In parentheses BELOW amount column total 4
Lesson 12-6, page 296

45. POSTING TOTALS OF A PURCHASES JOURNAL TO A GENERAL LEDGER
Purchases journal – one special amount column:
Purchases DR; Accounts Payable CR
Total and rule at end of each month
Post to general journal in 2 general ledger accounts

46. POSTING TOTALS OF A PURCHASES JOURNAL TO A GENERAL LEDGER2
1. Date
2. Journal Page Number 1 3
3. Column Total 5
4. Account Balance
5. Account Number 4
Lesson 12-6, page 297

47. Prove DR=CR, rule, at end of each month
POSTING TOTALS OF THE SPECIAL AMOUNT COLUMNS OF A CASH RECEIPTS JOURNAL TO A GENERAL LEDGER
Cash Receipts Journal: 4 special amount columns; + General DR and General CR
Acct Rec CR - TOTALS
Sales CR - TOTALS
Sales Tax Payable CR - TOTALS
Cash DR - TOTALS
General DR/CR – INDIVIDUAL (check mark at bottom)
Prove DR=CR, rule, at end of each month
Post totals to individual general ledger accounts

48. POSTING TOTALS OF THE SPECIAL AMOUNT COLUMNS OF A CASH RECEIPTS JOURNAL TO A GENERAL LEDGER2
1. Date
2. Journal Page Number 1 3 5
3. Column Total
4. Account Balance
5. Account Number 4
Lesson 12-6, page 298

49. POSTING TOTALS OF A CASH PAYMENTS JOURNAL TO A GENERAL LEDGER
Cash Payments Journal: 2 special amount columns + General DR/CR
Account Payable DR - TOTALS
Cash CR - TOTALS
General DR/CR – INDIVIDUAL (Check mark)
TOTAL, Prove DR=CR, rule, at end of each month
Post TOTALS to individual general ledger accounts

50. POSTING TOTALS OF A CASH PAYMENTS JOURNAL TO A GENERAL LEDGER – PG 2981 3 5
1. Date
2. Journal Page Number 4
3. Column Total
4. Account Balance
5. Account Number
Lesson 12-6, page 300

51. SUMMARY:
Omni posts vendor and customer accounts periodically throughout the month so that balance of subsidiary ledgers are up to date
Amounts in General Debit / Credit, Accounts Payable, and Accounts Receivable need to be posted individually!
Special Amount Columns Totals to be posted at end of month
Prove, Rule, and Post to General ledger at end of month need to be brought up to date only when preparing financial statements (before trial balance can be prepared)

52. Order of Posting Journals
Sales Journal
Purchases Journal
General Journal
Cash Receipts Journal
Cash Payments Journal
**This order USUALLY puts amounts in correct chronological order, but there may be exceptions depending on how frequently items are posted during the month***

53. TO DO:
Work Together, pg 302
On your own, pg 302
App Problems 12-5, 12-6
Ch 12 QUIZ – WEDNESDAY
THURSDAY – Finish Summary
Ch 12 TEST - FRIDAY