1. Learning Objectives LO7 Post merchandise purchases to an accounts payable ledger and a general ledger.

2.  Each entry in the purchases journal affects the account of the vendor named in the Account Credited column ◦ Posting frequently helps ensure that vendor accounts are paid on time  When several journals are used, an abbreviation is used to show from which journal the posting is made ◦ P is the abbreviation for the Purchases Journal SLIDE 2 LO7 Lesson 9-3

3. 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. SLIDE 3 LO7 Lesson 9-3 5. 5.Write the vendor number in the Post. Ref. column of the journal. 5 5 4 4 3 3 1 1 2 2

4. SLIDE 4 Totaling and Ruling a Purchases Journal LO7 1 1 Single Rule 5 5 Total Amount 2 2 Date 6 6 Double Rule 4 4 Total Column 3 3Total Lesson 9-3

5. SLIDE 5 Posting the Total of a Purchases Journal to a General Ledger LO7 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 Lesson 9-3

6. SLIDE 6 Lesson 9-2

7. SLIDE 7 Lesson 9-2

8. SLIDE 8 Lesson 9-2

9. SLIDE 9 Lesson 9-2

10. SLIDE 10 Lesson 9-2

11. SLIDE 11 Lesson 9-2

12. 1.Why should a business frequently post from the purchases journal to the accounts payable ledger? SLIDE 12 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

13. 2.Why is it important to record a posting reference in the accounts payable ledger? SLIDE 13 ANSWER It provides an audit trail that allows an employee to trace the transaction back to the journal and page number. Lesson 9-3

14. 3.Why is the vendor number written in the Post. Ref. column of the purchases journal? SLIDE 14 ANSWER To provide an audit trail to the account where the transaction was posted Lesson 9-3