Chapter 11 - Posting to General and Subsidiary Ledgers
Chapter 11 - Posting to General and Subsidiary Ledgers
Chapter 11 - Posting to General and Subsidiary Ledgers
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POSTING TO GENERAL<br />
AND SUBSIDIARY<br />
<strong>Chapter</strong> <strong>11</strong><br />
LEDGERS
KEY TERMS<br />
• <strong>Subsidiary</strong> Ledger<br />
• A ledger that is summarized in a single general ledger account<br />
• There are 2 main subsidiary ledgers<br />
• Accounts Payable (A/P) Ledger<br />
• Contains accounts with balances for vendors<br />
• Accounts Receivable (A/R) Ledger<br />
• Contains accounts with balances for cus<strong>to</strong>mers<br />
• Controlling Account<br />
• An account in the G/L that summarizes all accounts in a subsidiary<br />
ledger (i.e. A/P or A/R)
POSTING TO A/P LEDGER<br />
•From<br />
• Purchases Journal<br />
• Cash Payments Journal<br />
• <strong>General</strong> Journal<br />
•After <strong>Posting</strong> <strong>to</strong> A/P<br />
Ledger, prepare a<br />
Schedule of A/P<br />
•Prove the A/P Ledger<br />
•Compare the<br />
following:<br />
• Total of Schedule of<br />
A/P<br />
with<br />
• A/P Balance in G/L<br />
•Amounts should be =
POSTING TO A/R LEDGER<br />
•From<br />
• Sales Journal<br />
• Cash Receipts Journal<br />
• <strong>General</strong> Journal<br />
•After <strong>Posting</strong> <strong>to</strong> A/R<br />
Ledger, prepare a<br />
Schedule of A/R<br />
•Prove the A/R Ledger<br />
•Compare the<br />
following:<br />
• Total of Schedule of<br />
A/R<br />
with<br />
• A/R Balance in G/L<br />
•Amounts should be =
POSTING TO G/L<br />
•Post individual items<br />
from:<br />
• <strong>General</strong> Journal<br />
• Cash Payments<br />
Journal<br />
•After all individual<br />
items have been<br />
posted, Post the<br />
Totals of Special<br />
columns from:<br />
• Sales Journal<br />
• Purchases Journal<br />
• Cash Receipts Journal<br />
• Cash Payments
ORDER OF POSTING - JOURNALS<br />
• When posting amounts from journals, post using the following<br />
order:<br />
1. Sales Journal<br />
2. Purchases Journal<br />
3. <strong>General</strong> Journal<br />
4. Cash Receipts Journal<br />
5. Cash Payments Journal
CORRECTING ERRORS IN SUBSIDIARY<br />
LEDGER ACCOUNTS<br />
•On June 13 th , it was discovered that a sale on<br />
account <strong>to</strong> Jones Co. on May 29 th was<br />
incorrectly charged <strong>to</strong> Joe Jab Inc. for $250. M<br />
321<br />
•Correcting Entry:<br />
Debit Jones Co. $250<br />
Credit Joe Jab Inc. $250
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