Chapter 12- Posting to General and Subsidiary Ledgers

Subsidiary Ledger- A ledger that is summarized in a single general ledger

We will be using and accounts payable and accounts receivable ledger

Controlling Account- An account in a general ledger that summarizes all accounts in a subsidiary ledger

We will be using the accounts payable and receivable accounts

Explain where controlling accounts are maintained

In the subsidiary ledger

What us the relationship between a controlling account and a subsidiary ledger?

The balance of controlling accounts equal the total of all account balances in its related subsidiary ledger

Indentify in writing the two schedules that we will prepare

We will prepare a schedule of accounts payable and a schedule of accounts receivable

Rules for posting a journal's column totals

1. Place a check mark in parentheses below the General Debit and Credit column totals to indicate that they are not posted


2. The general ledger account number of the account listed in the column heading is written in parentheses below the special amount column to show that the totals are posted

Why the 3-column account form used in the accounts receivable ledger has a Debit Balance column?

Accounts receivable are assets and assets have normal debit balances

What is the title of the balance amount column of the accounts payable ledger form and why is that title used?

Credit balance; becuse it's a liability

Starting a new page in the accounts payable ledger

1. Write the vendor name on the vendor line


2. Write the vendor number on the vendor no. line


3. Write the date in the date column


4. Write the word Balance in the item column


5. Place a check mark in the Post Ref column


6. Write the account balance in the Credit Balance column
   

Posting to the accounts receivable ledger

1. Write the date in the date column


2. Write the journal page number in the Post Ref column


3. Write debit amount in the debit column


4. Add the amount in the debit column to the previous balance in the debit column. Write the new account balance in the debit balance column


5. Write the customer number in the Post Ref column