12-1

Chapter 12Posting to General Ledgers and Subsidiary LedgersA businesses size, number of transactions, and types of transactions determine the number of ledgers used in an accounting systemSubsidiary LedgerA ledger that is summarized in a single general ledger accountAccounts Payable LedgerA subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account is called an accounts payable ledgerAccounts Receivable LedgerA subsidiary ledger containing only accounts for charge customers is called an accounts receivable ledgerTotal amounts are summarized in single general ledger accounts: Accounts Payable for vendors, Accounts Receivable for charge customersControlling AccountAn account in a general ledger that summarizes all accounts in a subsidiary ledger is called a controlling accountControlling AccountThe balance of a controlling account equals the total of all account balances in its related subsidiary ledger12-1Posting to an Accounts Payable LedgerAccounts Payable Ledger and General Ledger Controlling AccountOmni assigns a vendor number to each account in the A/P ledgerFirst digit identifies the division in which the controlling account appears in the general ledgerSecond two digits show each accounts location within a subsidiary ledgerAccounts Payable Ledger FormsOmni uses a 3-column payable subsidiary account formExample p. 275A new account is opened by:Writing the vendor name & number on the headingPosting from a Purchases Journal to an Accounts Payable LedgerThe amount on each line of a purchases journal is posted as a credit to a vendor account in the accounts payable ledgerPosting from a Purchases Journal to an Accounts Payable LedgerWrite the dateWrite the journal page number in the post. Ref. columnWrite the credit amount in the credit columnAdd the amount in the credit column to the previous balance in the credit balance columnWrite the vendor #230 in the post. Ref. column on the purchases journal. This shows everything is complete.12-2Posting from Other Journals to an Accounts Payable LedgerPosting from a Cash Payments Journal to an Accounts Payable LedgerEach entry in the A/P debit column of a cash payments journal affects a vendor accountPosting from a Cash Payments Journal to an Accounts Payable LedgerP. 278 ExampleWrite the dateWrite the journal page number in the post ref columnWrite the debit amount in the debit column of the vendor accountSubtract the amount in the debit column to the previous balance in the credit balance columnWrite the vendor number in the post ref column of the cash payments journalPosting a Credit Entry from a General Journal to an Accounts Payable LedgerP. 279 ExampleWrite the dateWrite the general journal page number in the post ref columnWrite the amount in the credit column of the vendor accountAdd the amount in the credit column to the previous balance in the credit balance columnWrite the vendor number in the post ref columnProving the Accounts Payable LedgerA controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledgerProving the Accounts Payable LedgerA listing of vendor accounts, account balances and total amount due all vendors is called a schedule of accounts payableProving the Accounts Payable LedgerA schedule of a/p is prepared after all entries in a journal are postedExample p. 28112-3Posting to an Accounts Receivable LedgerAccounts Receivable Ledger and General Ledger Controlling AccountWhen the balance of a customer account in an accounts receivable ledger is changed, the balance of the controlling account, A/R, is also changedThe total of all customer account balances in the A/R ledger = the balance of the controlling account A/RAccounts Receivable Ledger FormsOmni uses a 3-column accounts receivable subsidiary account formNormal debit balance

Posting from a Sales Journal to an Accounts Receivable LedgerExample p. 285Write the dateWrite the sales journal page number in the post ref columnWrite the debit amount in the debit columnAdd the debit amount to the previous balance and put it in the debit balance columnWrite the customer number in the post ref column of the sales journal12-4Additional Posting to an Accounts Receivable LedgerPosting from a Cash Receipts Journal to an Accounts Receivable LedgerExample p. 287Write the dateWrite the cash receipts journal page number (CR) in the post ref column on the A/R ledgerWrite the credit amountSubtract the amount from the previous balance, write the new balance in the debit balance columnWrite the customer # in the post ref column of the cash receipts journalProving the Accounts Receivable LedgerSchedule of Accounts Receivable is preparedBalance of A/R in the ledgers must equal the schedule of A/R balance12-5Posting from Journals to a General LedgerStarting a New Page for an Account in a General LedgerWhen all lines have been used on a ledger, a new one is preparedAccount name, account number and account balances are recorded on the new pageExample p. 291Starting a New Page for an Account in a General LedgerWrite the account titleWrite the account numberWrite the dateWrite the word balance in the item columnPlace a check mark in the post ref column to show that the amount has been carried forwardWrite the balance in the balance columnPosting from the General Amount columns of a Cash Payments Journal to a General Ledger Recording items onto a general ledger from the general amount columns in a special journals, in this case cash payments journalExample p. 292

Posting a Debit entry from a General Journal to a General LedgerSimilar to posting a debit entry from the general amount columns of a special journalP. 293 ExamplePosting a Credit Entry from a General Journal to a General LedgerSame as debit post, just working with creditsP. 294 Example12-6Posting Totals to a General LedgerPosting Totals of a Sales Journal to a General LedgerP. 296 Example

Write the dateWrite the sales journal page # in the post ref column (s)For each column and account, write the column total in debit or creditFor each account, calculate and write the new account balanceIn the sales journal, write the general ledger account number in parentheses below the column total35Posting the Total of a Purchases Journal to a General LedgerP. 297 Example

Write the dateWrite the purchases journal page number in the post ref (p)For each account write the purchases column totalFor each account, calculate the new account balanceReturn to the purchases journal and write the purchases general ledger account number and accounts payable general ledger account number in parentheses below the column totalPosting Totals of the Special Amount Columns of a Cash Receipts Journal to a General LedgerP. 298 Example

Write the dateWrite the cash receipts journal page number in the post ref column (cr)For each special amount column & account, write the total in the debit or credit columnCalculate the new balances on the ledgersReturn to the cash receipts journal and write the general ledger account number in parentheses below the special amount column totalPosting Totals of the Special Amount Columns of a Cash Payments Journal to a General LedgerP. 300 Example

Write the dateWrite the cash payments journal number in the post ref column (cp)For each special amount column and account, write the amounts in dr or crCalculate the new balancesReturn to the cash payments journal and write the general ledger account number in parentheses below the special amount columnsOrder of Posting from Special JournalsJournals are posted in the following order:Sales JournalPurchases JournalGeneral JournalCash Receipts JournalCash Payments Journal