1. © 2014 Cengage Learning. All Rights Reserved. Posting from a Purchases Journal to an Accounts Payable Ledger ●Each entry in the purchases journal affects the account of the vendor named in the Account Credited column ●Amount on each line of the purchases journal posted as a credit to a vendor account in the accounts payable ledger ●When several journals are used, an abbreviation is used to show from which journal the posting is made ●P is the abbreviation used for purchases journal ●P11 means page 11 of purchases journal SLIDE 1

2. © 2014 Cengage Learning. All Rights Reserved. 1. 1.Write the date in the Date column of the vendor account. 4. 4.Add the amount in the Credit column to the previous balance in the Credit Balance column and write the new account balance in the Credit Balance column. 2. 2.Write the journal page number in the Post. Ref. column of the account. 3. 3.Write the credit amount in the Credit column of the vendor account. Posting from a Purchases Journal to an Accounts Payable Ledger SLIDE 2 LO7 Lesson 9-3 5 5 4 4 3 3 1 1 5. 5.Write the vendor number in the Post. Ref. column of the journal. 2 2

3. © 2014 Cengage Learning. All Rights Reserved. Totaling and Ruling a Purchases Journal SLIDE 3 LO7 Lesson 9-3 1 1 Single Rule 5 5 Total Amount 2 2 Date 6 6 Double Rule 4 4 Total Column 3 3 Total

4. © 2014 Cengage Learning. All Rights Reserved. Totaling and Ruling a Purchases Journal ●Calculating total does more than report total value of inventory purchased on account during a period of time ●Can post all purchases on journal page to general ledger using single journal entry ●Special journals significantly reduce time required to post transactions ●Total amount of purchases journal is posted to two general ledger accounts, Purchases and Accounts Payable SLIDE 4

5. © 2014 Cengage Learning. All Rights Reserved. Posting the Total of a Purchases Journal to a General Ledger SLIDE 5 LO7 Lesson 9-3 2 2 Journal Number 5 5 Account Number 1 1 Date 4 4 Account Balance 3 3 Debit or Credit 5 5 4 4 3 3 1 1 2 2

6. © 2014 Cengage Learning. All Rights Reserved. Lesson 9-3 Audit Your Understanding 1.Why should a business frequently post from the purchases journal to the accounts payable ledger? SLIDE 6 ANSWER Posting frequently to the accounts payable ledger helps ensure that vendor accounts are paid on time and that the business can continue purchasing goods and services on account. Lesson 9-3

7. © 2014 Cengage Learning. All Rights Reserved. Lesson 9-3 Audit Your Understanding 2.Why is it important to record a posting reference in the accounts payable ledger? SLIDE 7 ANSWER It provides an audit trail that allows an employee to trace the transaction back to the journal and page number. Lesson 9-3

8. © 2014 Cengage Learning. All Rights Reserved. Lesson 9-3 Audit Your Understanding 3.Why is the vendor number written in the Post. Ref. column of the purchases journal? SLIDE 8 ANSWER To provide an audit trail to the account where the transaction was posted Lesson 9-3

9. © 2014 Cengage Learning. All Rights Reserved. MindTap ●Class Activity: 9-3 Worth Together ●Before grading, evaluate one another’s work for any mistakes ●If everyone receives a 100%, air heads are rewarded SLIDE 9

10. © 2014 Cengage Learning. All Rights Reserved. Closure ●What journal would you use if we did not purchase merchandise on account as an operating business? SLIDE 10

11. © 2014 Cengage Learning. All Rights Reserved. Use of Article: ●Read about other types of journals used by merchandising corporations ●Choose which journal you believe is used most frequently and support reasoning as to how you have come to that conclusion SLIDE 11

12. © 2014 Cengage Learning. All Rights Reserved. Think & Ink: ●What do stores offer you to entice you to shop at their place of business? ●Why do you think stores do this so often? SLIDE 12