Accounting
Chapter 11 Notes
I.
Name ____________________________________
Date _____________________________________
Vocabulary
Accounts Payable Ledger:
Accounts Receivable Ledger:
Controlling Account:
Schedule of Accounts Payable:
Schedule of Accounts Receivable:
Subsidiary Ledger:
11-1 Posting to an Accounts Payable Ledger (pages 298 – 305)
I.
Ledgers and Controlling Accounts
a. Subsidiary Ledgers
i. Accounts Payable Ledger
ii. Accounts Receivable Ledger
b. General Ledger Controlling Accounts
II.
Assigning Account Numbers to Subsidiary Ledger Accounts
a. Refer to page 231 to view the chart of accounts for Hobby Shack, Inc. for the General Ledger and
Subsidiary Ledger
b. All subsidiary ledger accounts should be in alphabetical order
c. The vendors that fall under the Controlling account, Accounts Payable, will have three digit numbers
assigned to them that start with 2.
i. For example:
210 American Paint
220 Ceramic Supply
230 Crown Distributing
d. The charge customers that fall under the Controlling account, Accounts Receivable, will have three
digit numbers assigned to them that start with 1.
i. For example:
110 Country Crafters
120 Cumberland Center
130 Fairview Church
III.
Accounts Payable Ledger
a. The total of all vendor account balances in the accounts payable ledger equals the balance of the
controlling account, Accounts Payable
b. A new vendor account is opened by writing the vendor name and number on the heading of the
ledger account and placing it in alphabetical order.
IV.
Posting from a Purchases Journal
Posting from a Purchases Journal to an Accounts Payable Ledger
a. The five steps to post from a purchases journal to an accounts payable ledger account are as follows:
i.
ii.
iii.
iv.
v.
V.
Posting from a Cash Payments Journal
Posting from a Cash Payments Journal to an Accounts Payable Ledger
a. The five steps to post from a cash payments journal to an accounts payable ledger are as follows:
i.
ii.
iii.
iv.
v.
VI.
Posting from a General Journal
a. You have already learned this. Just remember that one transaction in a general journal may have
more than two items to post. Review the bottom of page 303.
VII.
Proving the Accounts Payable Ledger
a. The balance of Accounts Payable in the general ledger must equal the sum of all the vendor balances
in the subsidiary ledger
b. To prove this, a Schedule of Accounts Payable is created. See example on the top of page 305.
Complete Work Together 11-1 on page 306
--------------------------------------------------------------------------------------------------------------------11-2 Posting to an Accounts Receivable Ledger (pages 307 – 313)
VIII. Accounts Receivable Ledger
a. The total of all customer account balances in the accounts receivable ledger equals the balance of the
controlling account, Accounts Receivable.
b. When an account that is no longer used is removed from the A/R ledger, that customer number is
available for assignment to a new customer.
IX.
Posting from a Sales Journal
Posting from a Sales Journal to an Accounts Receivable Ledger
a. The five steps to post from a sales journal to an accounts receivable ledger account are as follows:
i.
ii.
iii.
iv.
v.
X.
Posting from a Cash Receipts Journal
Posting from a Cash Receipts Journal to an Accounts Receivable Ledger
a. The five steps to post from a cash receipts journal to an accounts receivable ledger are as follows:
i.
ii.
iii.
iv.
v.
XI.
Proving the Accounts Receivable Ledger
a. The balance of Accounts Receivable in the general ledger must equal the sum of all the charge
balances in the subsidiary ledger
b. To prove this, a Schedule of Accounts Receivable is created. See example on the top of page 313
Complete Work Together 11-2 on page 314
--------------------------------------------------------------------------------------------------------------------11-3 Posting from Journals to a General Ledger (pages 315 – 318)
XII. Starting a new page for a General Ledger Account
i.
ii.
iii.
iv.
v.
XIII. Posting from the General Amount Columns of a Cash Payments Journal
i.
ii.
iii.
iv.
v.
Note: Page 317 and page 318 explains posting from general journal to the general ledger
Complete Work Together 11-3 on page 319
---------------------------------------------------------------------------------------------------------------------
11-4 Posting Special Journal Totals to a General Ledger (pages 320 – 325)
Posting the Total of a Sales Journal to a General Ledger
The five steps to post each special amount column total are as follows
i.
ii.
iii.
iv.
v.
Posting the Total of a Purchases Journal to a General Ledger
The five steps to post the total of the purchases journal to the two general ledger accounts are as follows
vi.
vii.
viii.
ix.
x.
Posting from a Cash Payments Journal to a General Ledger
The five steps to post each special amount column total are as follows:
i.
ii.
iii.
iv.
v.
Posting from a Cash Payments Journal to a General Ledger
The five steps to post from the general columns of a cash payments journal to a general ledger are as follows:
i.
ii.
iii.
iv.
v.
XIV. Order of Posting from Special Journals
a. The journals should be posted in the following order:
i.
ii.
iii.
iv.
v.
vi.
vii.
b.
The five steps to post the totals for each special amount column to the general ledger account are as
follows:
i.
ii.
iii.
iv.