Acct. 9-5

Seite 1

Each entry in the Accounts Payable Debit column of a cash payments journal affects a vendor account. Individual amounts in the Accounts Payable Debit column are posted frequently to the proper vendor accounts in the accounts payable ledger. Frequent posting ensures that each vendor's account is up to date. A business needs to monitor its outstanding accounts payable balances to ensure that it can continue to purchase goods and services on account.

Posting from a Cash Payments Journal to an Accounts Payable Ledger

Write the date in the date column of the vendor account.

Write the journal page number in the Post. Ref. column of the account. The abbreviation means the page number of the cash payments journal.

Write the debit amount in the Debit column of the vendor account.

Subtract the amount in the Debit column from the previous balance in the Credit column. Write the new balance in the Credit Balances column.

Write the vendor number in the Post. Ref. column of the cash payments journal.

Keeping a fully stocked inventory is critical for the success of a merchandising business.

Entries in a cash payment journal are recorded in either the general amount columns or the special amount columns. Each amount in the General column of a cash payments journal is posted individually to the general ledger account written in the Account Title column.

*Writing the account number in a special journal provides an audit trial. An employee working with the journal can trace the transaction to the account where it was posted.

A journal is proved and ruled whenever a journal page is filled and always at the end of a month. The total for each column is written in the next available line.

If the total debits do not equal the total credits, the errors must be found and corrected before any more work is completed. Common errors include entering amounts incorrectly and entering a correct amount in the wrong column. Sometimes amounts are entered in the wrong journal.

Ruling a Cash Payments Journal

Rule a single line across all amount columns directly below the last entry to indicate that all the columns are to be added.

On the next line write the date in the date column

Write the word Totals in the Account Title column.

Write each column total below the single line

Rule double lines across all amount columns to show that the totals have been verified as correct.

The total of each special amount column is posted to the account named in the column's heading whenever a page is filled and always at the end of the month. The totals of the General amounts columns are not posted. Each amount in these columns are not posted. Each amount in these columns was posted individually to a general ledger account. To indicate that these totals are not posted, a check mark is placed in parentheses below each column total.

Posting the Total of a Cash Payments Journal to the General Ledger Accounts

Write the date in the Date column of the accounts.

Write the cash payments journal page number in the Post. Ref. column of the accounts.

For each account, write the cash payments journal column total in the Debit or Credit column.

For each account, write the cash payments journal column total int the Balance Debit or Balance Credit column.

return the cash payments journal and write the general ledger account number in parentheses below the column total.

A controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledger. Some businesses call this listing an accounts payable trial balance. A schedule of accounts payable is prepared after all entries in all journals are posted.