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© 2014 Cengage Learning. All Rights Reserved.
Posting from a Cash Payments Journal to an Accounts Payable Ledger
● Individual amounts in Accounts Payable Debit column posted frequently to proper vendor accounts in accounts payable ledger.
● Business must monitor outstanding accounts payable balances to ensure it can continue to purchase goods and services on account
● Many vendors establish limits on outstanding balances of customers
● A credit limit is the maximum outstanding balance allowed to a customer by a vendor.
SLIDE 1
LO10
Lesson 9-5
© 2014 Cengage Learning. All Rights Reserved.
Posting from a Cash Payments Journal to an Accounts Payable Ledger
SLIDE 2
LO10
Lesson 9-5
3 Debit1Date
5 Vendor Number
2Journal Page Number
4
Account Balance
© 2014 Cengage Learning. All Rights Reserved.
Posting from the General Amount Columns of a Cash Payments Journal to a General Ledger
● Each amount in General columns of cash payments journal posted individually to general ledger account written in Account Title column
SLIDE 3
© 2014 Cengage Learning. All Rights Reserved.
Posting from the General Amount Columns of a Cash Payments Journal to a General Ledger
SLIDE 4
LO10
Lesson 9-5
3 Debit1Date
5 Vendor Number
2Journal Page Number
4
Account Balance
© 2014 Cengage Learning. All Rights Reserved.
Informal Writing
● Summarize the process for posting from the cash payments journal to the subsidiary and general ledgers in three bullet points
SLIDE 5
© 2014 Cengage Learning. All Rights Reserved.
Totaling, Proving, and Ruling a Cash Payments Journal
● Journal proved and ruled whenever journal page is filled and always at end of month
● Total for each column written in next available line
● Totals used to prove debits equal credits● Common errors include entering amounts
incorrectly and entering correct amount in wrong column or even wrong journal
SLIDE 6
© 2014 Cengage Learning. All Rights Reserved.
Totaling, Proving, and Ruling a Cash Payments Journal
SLIDE 7
LO10
Lesson 9-5
3 Single Rule1 Date 5 Double Rule
4 Column Total2 “Totals”
© 2014 Cengage Learning. All Rights Reserved.
Posting from the Special Amount Columns of a Cash Payments Journal to a General Ledger
● Total of each special amount column…posted to account names in column’s heading… whenever page is filled and at end of month
● Totals of General amount columns not posted● Each amount in these columns posted individually
to general ledger account● To indicate these totals are not posted, check
mark placed in parentheses below each column total
SLIDE 8
© 2014 Cengage Learning. All Rights Reserved.
Posting from the Special Amount Columns of a Cash Payments Journal to a General Ledger
SLIDE 9
LO10
Lesson 9-5
3Debit or Credit Amount1Date
Journal PageNumber
2
4Account Balance
1 2
5 Account Number
3 4
5
1 2 3 4
5
© 2014 Cengage Learning. All Rights Reserved.
Completed Accounts Payable Ledger
SLIDE 10
LO10
Lesson 9-5
© 2014 Cengage Learning. All Rights Reserved.
Proving the Accounts Payable Ledger
● Controlling account balance in general ledger…must equal sum of all account balances in subsidiary ledger
● A listing of vendor accounts, account balances, and the total amount due to all vendors is called a schedule of accounts payable.● Also known as an account payable trial balance● Schedule of accounts payable is prepared after all
entries in all journals are posted
SLIDE 11
LO10
Lesson 9-5
© 2014 Cengage Learning. All Rights Reserved.
Proving the Accounts Payable Ledger
SLIDE 12
LO10
Lesson 9-5
© 2014 Cengage Learning. All Rights Reserved.
Lesson 9-5 Audit Your Understanding
1. In which column of the cash payments journal are the amounts that are posted individually to the accounts payable ledger?
SLIDE 13
ANSWER
Accounts Payable Debit
Lesson 9-5
© 2014 Cengage Learning. All Rights Reserved.
Lesson 9-5 Audit Your Understanding
2. List the five steps for ruling a cash payments journal at the end of the month.
SLIDE 14
ANSWER
1. Rule a single line across all amount columns.2. Write the date in the Date column.3. Write Totals in the Account Title column.4. Write each column total below the single line.5. Rule a double line across all amount columns.
Lesson 9-5
© 2014 Cengage Learning. All Rights Reserved.
Lesson 9-5 Audit Your Understanding
3. What is the relationship between a controlling account and a subsidiary ledger?
SLIDE 15
ANSWER
A controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledger.
Lesson 9-5
© 2014 Cengage Learning. All Rights Reserved.
Numbered Heads Together
● Numbered Heads Together:● Work in teams of five to complete 9-5 Work Together● If everyone receives 100% and your team completes it
faster than the other team, your group will receive air heads
● Not only do you need to receive 100% across the entire team, but you also need to make sure each team member can explain the process of posting from the sales journal to either the General Ledger or Subsidiary Ledger
● Once we are finished, we will follow the same procedure for 9-5 OYO (10 mins)
SLIDE 16
© 2014 Cengage Learning. All Rights Reserved.
Proper Order
● Place the index cards with different stages of posting from the cash payments journal in proper sequence
● First group to finish first wins!● Flash Card Review Game
● Each student approaches board to flip over a new card● If answered correctly, student gets 5 points● If not, receive nothing● Students with most points get Starbursts (Jess needs to
receive her amount)
SLIDE 17
© 2014 Cengage Learning. All Rights Reserved.
Closure
● Are credit limits helpful or more harmful? Why?
● How can you ensure payment?
SLIDE 18
