Posting To General and Subsidiary Ledgers

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Accounting
Financial Accounting

Terms in this set (18)

accounts payable ledger

a subsidiary ledger containing only accounts for vendors from whom merchandise or
other items are purchased on account
accounts receivable ledger
a subsidiary ledger containing only accounts for charge customers
controlling account
an account in a general ledger that summarizes all accounts in a subsidiary ledger
schedule of accounts payable
a listing of vendor accounts, account balances, and total amount due all vendors
schedule of accounts receivable
a listing of customer accounts, account balances, and total amount due from all
customers
subsidiary ledger
a ledger that is summarized in a single general ledger account
What is the relationship between a controlling account and a subsidiary ledger?
A controlling account summarizes all accounts in a subsidiary ledger.

The balance of a controlling account equals the total of all account balances in its
related subsidiary ledger.
In which column of the cash payments journal are the amounts that are posted
individually to the accounts payable ledger?
Accounts Payable Debit column
To which accounts are the separate amounts in the sales journal posted individually?
Customer accounts listed in the Accounts Receivable Debit column
In which column of the cash receipts journal are the amounts that are posted
individually to the accounts receivable ledger?
Accounts Receivable Credit column
What accounts are listed on a schedule of accounts receivable?
All customer accounts that have balances
Which amounts in a general journal are posted individually?
Amounts in the Debit and Credit columns
List the five steps for posting to a general ledger account.
Write the date in the Date column of the account.
Write the journal page number in the Post. Ref. column of the account.
Write the amount in the Debit or Credit column of the account
Calculate and write the new account balance in the Balance Debit or Balance Credit
column of the account.
Write the general ledger account number in the Post. Ref. column of the journal.
For which columns of a special journal are the column total posted to the general
ledgers?
Each special amount column
In what order should special journals be posted to the general ledger?
a. Sales journal
b. Purchases journal
c. General journal
d. Cash Receipts journal
e. Cash Payments journal
What is the source document for a correcting entry affecting customer accounts?
Memorandum
How does a correcting entry affecting customer accounts impact the general ledger
accounts?
It does not affect the general ledger accounts
How does posting a correcting entry affecting customer accounts differ from recording
other general journal entries that impact subsidiary ledger accounts?
Only a reference to the subsidiary ledger account is entered in the Post. Ref. column of
the general journal.
ecording Transactions in a General Journal
Tags related to this set
Accounting
Accounting 1

Terms in this set (26)

journal
a form for recording transactions in chronological order
journalizing
recording transactions in a journal
entry
information for each transaction recorded in a journal
general journal
a journal with two amount columns in which all kinds of entries can be recorded
double-entry accounting
the recording of debit and credit parts of a transaction
source document
a business paper from which information is obtained for a journal entry
check
a business form ordering a bank to pay cash from a bank account
invoice
a form describing the goods or services sold, the quantity, and the price
sales invoice
an invoice used as a source document for recording a sale on account
receipt
a business form giving written acknowledgement for cash received
memorandum
a form on which a brief message is written describing a transaction
In what order are transactions recorded in a journal?
By date
Why are source documents important?
Source documents are one way to verify the accuracy of a specific journal entry.
List the four parts of a journal entry.
Date
Debit
Credit
Source Document
When cash is paid for insurance, which account is listed on the first line of the entry?
Prepaid Insurance
When supplies are bought on account, which account is listed on the first line of the
entry?
Supplies
When supplies are bought on account, which account is listed on the second line of the
entry?
Accounts Payable
When cash is paid on account, which account is listed on the second line of the entry?
Cash
When cash is received from sales, which account is listed on the first line of the entry?
Cash
When cash is received from sales, which account is listed on the second line of the
entry?
Sales
When services are sold on account, which account is listed on the second line of the
entry?
Sales
When cash is paid for any reason, what abbreviation is used for the source document?
C
When cash is received on account, what abbreviation is used for the source document?
R
When is a general journal page complete?
When there is insufficient space to record any more entries.
If an entire entry is incorrect and is discovered before the next entry is journalized, how
should the incorrect entry be corrected?
Draw neat lines through all parts of the incorrect entry. Journalize the entry correctly on
the next blank lines.
If several correct entries are recorded after an incorrect entry is made how should the
incorrect entry be corrected?
Draw neat lines through all incorrect parts of the entry. Record the correct items on the
same lines as the incorrect items, directly above the canceled parts