1. LESSON 11-1 Posting to an Accounts Payable Ledger
4/28/2018
LESSON 11-1
Posting to an Accounts Payable Ledger
Original created by M.C. McLaughlin, Thomson/South-Western
Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School

2. Ledgers & Controlling Accounts
A business needs to know the amount owed each vendor as well as the amount to be collected from each charge customer
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 merchandise is purchased on account or other items are bought on account is called an accounts payable ledger
A subsidiary ledger containing only accounts for charge customers is called an accounts receivable ledger
An account in a general ledger that summarizes all accounts in a subsidiary ledger is called a controlling account
LESSON 11-1

3. ACCOUNTS PAYABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT
page 299
When the balance of a vendor account in an accounts payable ledger is changed, the balance of the controlling account, Accounts Payable, is also changed
The total of all vendor account balances in the accounts payable ledger equals the balance of the controlling account, Accounts Payable
A new account is opened by writing the vendors name and vendor number on the heading of the ledger account
LESSON 11-1

4. ACCOUNTS PAYABLE LEDGER FORMS
page 300 1 2 3 4 5 6
1. Write the vendor name.
2. Write the vendor number.
3. Write the date.
4. Write the word Balance.
5. Place a check mark in the Post. Ref. column.
6. Write the balance.
LESSON 11-1

5. POSTING FROM A PURCHASES JOURNAL TO AN ACCOUNTS PAYABLE LEDGER
page 301
The amount on each line of a purchases journal is posted as a credit to a vendor account in the accounts payable ledger 2 1 3 5 4
1. Write the date.
2. Write the journal page number.
4. Write the new account balance.
3. Write the credit amount.
5. Write the vendor number.
LESSON 11-1

6. POSTING FROM A CASH PAYMENTS JOURNAL TO AN ACCOUNTS PAYABLE LEDGER
page 302
Each entry in the Accounts Payable Debit column of a cash payments journal affects a vendor account 2 1 5 3
1. Write the date.
2. Write the journal page number.
3. Write the debit amount. 4
4. Subtract the amount in the Debit column from the previous balance in the Credit column. Write the new balance.
5. Write the vendor number.
LESSON 11-1

7. POSTING A CREDIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER
page 303
Entries in a general journal may affect account balances in a general ledger & an accounts payable ledger 2 1 5 3 4
1. Write the date.
4. Add the amount in the Credit column to the previous balance in the Credit Balance column. Write the new balance.
2. Write the general journal page number.
3. Write the amount.
5. Write the vendor number.
LESSON 11-1

8. POSTING A DEBIT ENTRY FROM A GENERAL JOURNAL TO AN ACCOUNTS PAYABLE LEDGER
page 303 2 1 3 5 4
1. Write the date.
4. Add the amount in the Debit column to the previous balance in the Debit Balance column. Write the new balance.
2. Write the general journal page number.
3. Write the amount.
5. Write the vendor number.
LESSON 11-1

9. COMPLETED ACCOUNTS PAYABLE LEDGER
page 304
All vendor accounts make up the complete accounts payable ledger
After the Accounts Payable ledger has been posted for the month, the credit balance in each vendor account represents the amount the business owes each vendor
LESSON 11-1

10. PROVING THE ACCOUNTS PAYABLE LEDGER
page 305
A controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledger
A listing of vendor accounts, account balances, and total amount due all vendors is called a schedule of accounts payable
A schedule of accounts payable is prepared after all entries in a journal are posted
The total of the schedule of accounts payable balance must be the same as the A/P general ledger amount
LESSON 11-1

11. TERMS REVIEW subsidiary ledger accounts payable ledger
page 306
subsidiary ledger
accounts payable ledger
accounts receivable ledger
controlling account
schedule of accounts payable
LESSON 11-1