Accounting Words from Chapter 12

Subsidiary ledger

Accounts payable ledger

Accounts receivable ledger

Controlling Account

Schedule of accounts receivable

Schedule of Accounts payable

A ledger that is summarized in a single general ledger account

A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account

A subsidiary ledger containing only accounts for charge customers

An account in the general ledger that summarizes all accounts in a subsidiary ledger

A listing of vendor accounts, account balances, and total amount due all vendors

A listing of customer accounts, account balances, and total amount due from all customers

Posting Step 1 Post the separate items in the following journals to the general and subsidiary ledgers. –Sales journal to the accounts receivable ledger. –Purchases journal to the accounts payable ledger. –General journal to the general ledger and the account payable ledger. –Cash receipts journal to the accounts receivable ledger. –Cash payments journal to the general ledger and the accounts payable ledger.

Step 2 Prove and rule the sales journal. Post the totals of the special amount columns.

Step 3 Total and rule the purchases journal. Post the total.

Step 4 Prove and rule the cash receipts journal. Post the total of the special amount columns.

Step 5 5. Prove and rule the cash payments journal. Post the total of the special amount columns.

Step 6 6. Using the last day of the month, prepare a schedule of accounts payable and a schedule of accounts receivable.

Step 7 7. Compare the total of the schedules with the balances of the controlling accounts in the general ledger. If the totals are not the same, find and correct the errors.