Lesson 09-5-G

LESSON 9-5 Posting from a Cash Payments Journal Learning Objectives LO10 Post cash payments to an accounts payable ledger and a general ledger. Posting from a Cash Payments Journal to an Accounts Payable Ledger A credit limit is the maximum outstanding balance allowed to a customer by a vendor. LO10 SLIDE 2 Lesson 9-5 Posting from a Cash Payments Journal to an Accounts Payable Ledger 3 Debit 1 Date 5 Vendor Number 2 Journal Page Number 4 Account Balance LO10 SLIDE 3 Lesson 9-5 Posting from the General Amount Columns of a Cash Payments Journal to a General Ledger 3 Debit 1 Date 5 Vendor Number 2 Journal Page Number 4 Account Balance LO10 SLIDE 4 Lesson 9-5 Totaling, Proving, and Ruling a Cash Payments Journal 3 Single Rule 1 Date 5 Double Rule 4 Column Total 2 “Totals” LO10 SLIDE 5 Lesson 9-5 Posting from the Special Amount Columns of a Cash Payments Journal to a General Ledger 3 Debit or Credit Amount 1 Date Journal Page Number 2 4 Account Balance 1 2 5 Account Number 3 4 5 1 2 3 4 5 LO10 SLIDE 6 Lesson 9-5 Completed Accounts Payable Ledger LO10 SLIDE 7 Lesson 9-5 Proving the Accounts Payable Ledger A listing of vendor accounts, account balances, and the total amount due to all vendors is called a schedule of accounts payable. LO10 SLIDE 8 Lesson 9-5 Lesson 9-5 Audit Your Understanding (1) 1. In which column of the cash payments journal are the amounts that are posted individually to the accounts payable ledger? ANSWER Accounts Payable Debit SLIDE 9 Lesson 9-5 Lesson 9-5 Audit Your Understanding (2) 2. List the five steps for ruling a cash payments journal at the end of the month. 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. SLIDE 10 Lesson 9-5 Lesson 9-5 Audit Your Understanding (3) 3. What is the relationship between a controlling account and a subsidiary ledger? ANSWER A controlling account balance in a general ledger must equal the sum of all account balances in a subsidiary ledger. SLIDE 11 Lesson 9-5