6. Powerpoint - Subsidiary ledger example
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Accounting Practices 501 Chapter 5 Subsidiary ledgers Example Cathy Saenger, Senior Lecturer, Eastern Institute of Technology © Pearson 2011 Accounts receivable subsidiary ledger Let’s work our way through an example of the Accounts Receivable Subsidiary Ledger Ch5B - Subs ledgers example 2 G Green B Blue R Red 450 200 92 $742 The Accounts Receivable Subsidiary Ledger contained the above accounts at 1 March Ch5B - Subs ledgers example 3 G Green B Blue R Red 450 200 92 General Ledger Ref Date Details Dr Cr ACC RECEIVABLE CONTROL $742 1 Opening bal Bal 742 Dr We’ll do the opening balances first Remember the Subsidiary Ledger is separate from the General Ledger The Acc Receivable Control account in the General Ledger balances with the total of the individual accounts in the subsidiary ledger Let’s look at the transactions that occurred during the month and post them to the subsidiary ledger Accounts Receivable Subsidiary Ledger Ref Date Details Dr Cr G GREEN 1 Opening bal Bal 450 Dr B BLUE 1 Opening bal 200 Dr R RED 1 Opening bal Ch5B - Subs ledgers example 92 Dr $742 4 G Green B Blue R Red 450 200 92 General Ledger Ref Date Details Dr Cr ACC RECEIVABLE CONTROL $742 1 Sales Journal Date Details Acc rec G Green 276 36 240 10 G Green -92 -12 -80 184 Date Details 22 B Blue Bank 742 Dr GST collec Sales 9 Cash Receipts Journal Opening bal Bal GST Coll 200 Acc rec Accounts Receivable Subsidiary Ledger Ref Date Details Dr Cr G GREEN 1 Opening bal Bal 450 Dr 200 200 B BLUE 1 General Journal Date Details 31 Dr Bad Debts 80 GST 12 Acc rec-R Red Cr Opening bal 200 Dr R RED 1 Opening bal 92 Ch5B - Subs ledgers example 92 Dr $742 5 G Green B Blue R Red 450 200 92 Sales Journal Date Details $742 Acc rec GST collec Sales 9 G Green 276 36 240 10 G Green -92 -12 -80 GST Coll Acc rec 184 Cash Receipts Journal Date Details 22 B Blue Bank 200 200 200 General Journal Date Details 31 Dr Bad Debts 80 GST 12 Acc rec-R Red Cr Totals from the journals are posted to the Accounts Receivable Control account and individual customers’ amounts are posted to the customer accounts in the Subsidiary Ledger. Transaction recorded in the General Journal will be posted to both the control account AND the individual customer’s account 92 Ch5B - Subs ledgers example 6 G Green B Blue R Red 450 200 92 Sales Journal Date Details General Ledger Ref Date Details Dr Cr ACC RECEIVABLE CONTROL $742 Acc rec GST collec Sales 9 G Green 276 36 240 10 G Green -92 -12 -80 184 Dr Cash Receipts Journal Date Details 22 B Blue Bank GST Coll 200 Acc rec 1 Opening bal 31 Bad Debts GJ 31 Sales SJ 31 Receipts 1 742 Dr 650 Dr 834 Dr 200 Opening bal 634 Dr Bal 450 Dr B BLUE 1 Dr Bad Debts 80 GST 12 Acc rec-R Red - 200 General Journal 31 184 Accounts Receivable Subsidiary Ledger Ref Date Details Dr Cr G GREEN 200 Cr Date Details CRJ 92 Bal Cr 200 Dr R RED 1 92 Opening bal Opening bal 31 Bad Debts Ch5B - Subs ledgers example 92 Dr GJ 92 NIL 7 We can now post the individual customer amounts to the Subsidiary Ledger Ch5B - Subs ledgers example 8 G Green B Blue R Red 450 200 92 Sales Journal Date Details General Ledger Ref Date Details Dr Cr ACC RECEIVABLE CONTROL $742 Acc rec GST collec Sales 9 G Green 276 36 240 10 G Green -92 -12 -80 184 Dr Cash Receipts Journal Date Details 22 B Blue Bank GST Coll 200 Acc rec 200 1 Opening bal 31 Bad Debts GJ 31 Sales SJ 31 Receipts Date Details 1 Opening bal 9 Sales 31 Bad Debts 80 GST 12 Acc rec-R Red Cr 742 Dr 650 Dr 834 Dr 200 634 Dr Bal 450 Dr SJ 276 726 Dr Opening bal 200 Dr R RED 1 92 CRJ - B BLUE 1 Dr 184 Accounts Receivable Subsidiary Ledger Ref Date Details Dr Cr G GREEN 200 Cr General Journal 92 Bal Opening bal 31 Bad Debts Ch5B - Subs ledgers example 92 Dr GJ 92 NIL 9 G Green B Blue R Red 450 200 92 Sales Journal Date Details General Ledger Ref Date Details Dr Cr ACC RECEIVABLE CONTROL $742 Acc rec GST collec Sales 9 G Green 276 36 240 10 G Green -92 -12 -80 1 Opening bal 31 Bad Debts GJ 31 Sales SJ 31 Receipts 184 834 Dr 200 Accounts Receivable Subsidiary Ledger Ref Date Details Dr Cr G GREEN 184 Dr The return on the 10th has been recorded as a negative in the Sales Journal 1 Opening bal 9 Sales 10 Sales Return 742 Dr 650 Dr 92 CRJ Bal 634 Dr Bal 450 Dr SJ 276 726 Dr SJ 92 634 Dr B BLUE 1 Opening bal 200 Dr R RED 1 Opening bal 31 Bad Debts Ch5B - Subs ledgers example 92 Dr GJ 92 NIL 10 G Green B Blue R Red 450 200 92 Sales Journal Date Details General Ledger Ref Date Details Dr Cr ACC RECEIVABLE CONTROL $742 Acc rec GST collec Sales 9 G Green 276 36 240 10 G Green -92 -12 -80 184 Dr Cash Receipts Journal Date Details 22 B Blue Bank GST Coll 200 Acc rec 31 31 Sales SJ 31 Receipts Dr Opening bal 200 9 Sales 200 Cr 10 Sales Return 80 GST 12 Cr 184 834 Dr 200 634 Dr Bal 450 Dr SJ 276 726 Dr SJ 92 634 Dr B BLUE Opening bal 200 Dr 22 Cash receipts CRJ R RED 1 92 92 CRJ 742 Dr 650 Dr Accounts Receivable Subsidiary Ledger Ref Date Details Dr Cr G GREEN 1 Bad Debts Acc rec-R Red GJ 1 General Journal Date Details 1 Opening bal 31 Bad Debts Bal 200 Opening bal 31 Bad Debts Ch5B - Subs ledgers example NIL 92 Dr GJ 92 NIL $634 11 • The total of the individual Accounts Receivable accounts in the Subsidiary Ledger will balance with the Accounts Receivable Control in the General Ledger Ch5B - Subs ledgers example 12 Exactly the same applies to the Accounts Payable Subsidiary Ledger How was that? Ch5B - Subs ledgers example 13
