accounting chapter 13 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Accounting - Chapter 13 PowerPoint Presentation
Download Presentation
Accounting - Chapter 13

Loading in 2 Seconds...

play fullscreen
1 / 8

Accounting - Chapter 13 - PowerPoint PPT Presentation


  • 1565 Views
  • Uploaded on

Accounting - Chapter 13 Posting to General and Subsidiary Ledgers Ledgers General Ledger: a ledger with all accounts needed to prepare financial statements Subsidiary Ledgers: to eliminate a bulky ledger, subsidiary ledgers are kept for vendors and customers

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Accounting - Chapter 13' - lotus


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
accounting chapter 13

Accounting - Chapter 13

Posting to General and Subsidiary Ledgers

ledgers
Ledgers
  • General Ledger:
    • a ledger with all accounts needed to prepare financial statements
  • Subsidiary Ledgers:
    • to eliminate a bulky ledger, subsidiary ledgers are kept for vendors and customers
    • accounts payable ledger holds all vendor accounts
    • accounts receivable ledger holds all customer accounts
controlling accounts
Controlling Accounts
  • Controlling Account:
    • an account in a general ledger that summarizes all accounts in a subsidiary ledger
  • Accounts Receivable (customers)
  • Accounts Payable (vendors)
slide4
Posting to a General Ledger

Only amounts from the general debit or credit columns are posted to the general ledger individually

Totals of special amount columns are posted at the end of the month.

Opening a New Page for a General Ledger Account

When all lines in a ledger account page are filled, a new page must be opened.

Do the following to open the new page:

write account title & number

write in the date

“Balance” is written in the item column

write the balance in the balance column (debit or credit)

assigning account numbers in subsidiary ledgers
Assigning Account Numbers in Subsidiary Ledgers
  • Three digit vendor or customer numbers are assigned in subsidiary ledgers
  • Each digit signifies something:
    • digit 1 - identifies the division in which the controlling account appears in the general ledger (AR “100” AP “200”)
    • digit 2 and 3 - shows the account location in the subsidiary ledger
  • Adding new accounts:
    • vendors and customers are listed alphabetically in each ledger
    • same procedure as general ledger
the accounts payable ledger
The Accounts Payable Ledger
  • Has only one balance column - credit
    • a liability with a normal credit balance
  • Information from the Accounts Payable Columns
    • a credit - add the amount to the balance
    • a debit - subtract the amount from the balance
  • The same steps are followed as a general ledger when posting
the accounts receivable ledger
The Accounts Receivable Ledger
  • Has only one balance column - debit
    • an asset with a normal debit balance
  • Information from the Accounts Receivable Columns
    • a debit - add the amount to the balance
    • a credit - subtract the amount from the balance
  • The same steps are followed as a general ledger when posting
proving the accuracy of posting
Proving the Accuracy of Posting
  • Prove Cash
  • Prove the Subsidiary Ledgers
    • Schedule of Accounts Payable
    • Schedule of Accounts Receivable
    • made after all entries have been posted for the month
    • balance in AR/AP general ledger account is equal to the Schedule of AR/AP