1. Chapter 12 Posting to General and Subsidiary Ledgers

2. Things you need to know. General Ledger – has all of our accounts in it except for the accounts payable and accounts receivable vendors. General Ledger – has all of our accounts in it except for the accounts payable and accounts receivable vendors. Subsidiary Ledger – is a secondary ledger that keeps track of secondary accounts and reports the totals to the general ledger. This is where the vendors are kept track of…. Subsidiary Ledger – is a secondary ledger that keeps track of secondary accounts and reports the totals to the general ledger. This is where the vendors are kept track of….

3. Subsidiary Ledger Accounts Payable Ledger - This is a ledger (book of accounts ) that keeps track of all of the individual accounts that we owe money to. Accounts Payable Ledger - This is a ledger (book of accounts ) that keeps track of all of the individual accounts that we owe money to. Accounts Receivable Ledger – Keeps track of the individual accounts that owe us money. Accounts Receivable Ledger – Keeps track of the individual accounts that owe us money.

4. Controlling Account The controlling account is a account in the general ledger that keeps track of the total of the subsidiary accounts. The controlling account is a account in the general ledger that keeps track of the total of the subsidiary accounts.

5. Pacific Imports 3,816 Foxfire Supply 900 Embassy Office Supply 996 Crown Ltd 2039 African Importers 4147.20 Accent Importers 7145.88 3816 900 996 2039 4147.20 7145.88 19044.08 Total in the Subsidiary ledger Accounts. Accounts Payable Subsidiary Ledger General Ledger Accounts Payable Account Balance 19044.08 Controlling Account- keeps balance of the total of all of the accounts

6. How do we get all of those numbers to work out????? Rules for posting from special journals Rules for posting from special journals Special Amount columns (columns with account names on them) ONLY ONLY the totals are posted at the end of the month. Special Amount columns (columns with account names on them) ONLY ONLY the totals are posted at the end of the month. EXCEPT the Accounts Receivable and Accounts Payable/Receivable Columns EXCEPT the Accounts Receivable and Accounts Payable/Receivable Columns Totals are posted at the end of the month and individually throughout the month Totals are posted at the end of the month and individually throughout the month General Amount columns are posted individually General Amount columns are posted individually

7. Posting from the Purchases Journal Purchases Journal DateAccount CreditedPurch No.Post Ref Purchases Dr. Accts Pay Cr. Nov2Crown Ltd.83 2039 Nov 2 Crown Ltd. Purchased merchandise on account $2039, PO 83. Account Crown Ltd Account NO230 DateItemPost RefDebitCredit Balance DebitCredit Nov2 p11 2039 Accounts Payable Ledger 230

8. Lets try another one…….. On October 7, paid cash to Pacific Imports $1050 check No. 294 Cash Payments Journal DateAccount Title CK NOPost Ref General Accounts Pay Debit Cash Credit DebitCredit Oct7Pacific Imports294 1050 What do we post????? AccountPacific Imports Account NO260 DateItemPost RefDebitCredit Balance DebitCredit Oct1 cp1 1050 7 cp11050 ----------------- 260

9. General JournalPage 1 Date Account TitleDoc NoPost RefDebitCredit Nov6Supplies-storem52 210 Accts Pay/foxfire sup 210 We bought supplies on account from Foxfire Supplies $210 Memo 52 What do we post here?Everything!!!!!!! AccountStore Supplies Account NO220 DateItemPost RefDebitCredit Balance DebitCredit Nov6 G1210 220 AccountAccounts Payable Account NO310 DateItemPost RefDebitCredit Balance DebitCredit Nov6 G1 210 310 AccountFox Fire Supply Account NO250 DateItemPost RefDebitCredit Balance DebitCredit Nov6 G1 210 250

10. At the end of the month we create two financial sheets to make sure that everything is in balance with our payables and receivables Omni Imports Schedule of Accounts Payable November 30 20XX Accent Importers $ 7,145.88 African Importers $ 4,147.20 Crown Ltd $ 2,039.00 Embassy Office Supplies $ 996.00 Foxfire Supply $ 900.00 Pacific Imports $ 3,816.00 Total Accounts Payable $19,044.08 This total should equal what the total in our controlling account is

11. Lets review….. Lets review….. What do we post individually??? What do we post individually??? Any columns that have amounts under the accounts payable or receivable columns Any columns that have amounts under the accounts payable or receivable columns Anything in the general journal or General amount columns. Anything in the general journal or General amount columns. Everything else is posted at the end of the month. Everything else is posted at the end of the month.

12. What does all of that mean? Sales Journal DateAccount Debited Sales No Post Ref Account Rec. Debit Sales Credit Sales Tax Payable Credit 3-NovChildren's Paradise76 250 864.9681648.96 So what do we post in this transaction? AccountChildren's Paradise Account NO 250 DateItemPost RefDebitCredit Balance DebitCredit Nov 3 s1864.96 Childrens Paradise bought merchandise on account $816 plus tax $48.96 Total $864.96

13. Here is what we do at the end of the month…..

14. Sales Journal DateAccount Debited Sales No Post Ref Account Rec. Debit Sales Credit Sales Tax Payable Credit 3-NovChildren's Paradise76 864.9681648.96 30-Nov Bob Toys79 925.2290025.22 30-Nov Totals 1790.181716.0074.18 Now that we are at the end of the month we have to post…. What do we post Here? AccountSales Account NO410 DateItemPost RefDebitCredit Balance DebitCredit Nov30 g1 1716 AccountSales Tax Payable Account NO225 DateItemPost RefDebitCredit Balance DebitCredit Nov30 g1 74.18 We are going to take the totals and post them into the general ledger!!!!! Account Accounts Receivable Account NO115 DateItemPost RefDebitCredit Balance DebitCredit Nov30 g1 1790.18 (410) (225) (115)

15. Rules that you have to know about posting….. Post individually Post individually Any amount that fall under general amount columns Any amount that fall under general amount columns Any amount that falls under a account rec/accounts pay column Any amount that falls under a account rec/accounts pay column Post totals Post totals All of the special amount columns All of the special amount columns

16. Purchases Journal DateAccount CreditedPurch No.Post Ref Purchases Dr. Accts Pay Cr. Nov2Crown Ltd.83 2039 NOV30Totals 17148 We now are at the end of the month and we need to finish posting the rest of the information… As we went along we posted info into the name of the companies account now we go into the general ledger and post to the rest of the accounts- Purchases account and accounts payable. AccountAccounts Payable Account NO115 DateItemPost RefDebitCredit Balance DebitCredit Nov30 P1 17148 (115) AccountPurchases Account NO225 DateItemPost RefDebitCredit Balance DebitCredit Nov30 P117148 (225)

17. Cash Payments Journal DateAccount Title CK NOPost Ref General Accounts Pay Debit Cash Credit DebitCredit Oct7Pacific Imports294 1050 NOV30TOTALS 16462.99 1390.7512984.00 28056.24 AccountAccounts Payable Account NO115 DateItemPost RefDebitCredit Balance DebitCredit Nov30 P1 17148 12984.0 4164 (115) AccountCash Account NO225 DateItemPost RefDebitCredit Balance DebitCredit Nov30 P1 28056.24 (225) (check mark)

18. Problems 1,2,3,4,5,6,7 Problems 1,2,3,4,5,6,7