Chapter 20 - The accounts payable ledger. After completing this chapter, students will be able to: Post to the Accounts payable ledger, prepare a schedule of accounts payable, record transactions involving notes payable. | CHAPTER TWENTY THE ACCOUNTS PAYABLE LEDGER 1. Post to the Accounts Payable ledger. 2. Prepare a schedule of Accounts Payable. 3. Record transactions involving notes payable. THE ACCOUNTS PAYABLE LEDGER Objectives: 20- The Accounts Payable Ledger Businesses use special ledgers like the Accounts Payable ledger to be more efficient in their financial operation. Separate accounts are used for each creditor. 20- The Accounts Payable Ledger (continued) All accounts for creditors can be placed in the Accounts Payable ledger. Accounts Payable ledgers are known as subsidiary ledgers. 20- Posting To the Accounts Payable Ledger Entries should be posted to the Accounts Payable ledger on a daily basis. Up-to-date information is critical for the operation of a business. 20- Posting to the Accounts Payable Ledger (continued) When the ledger is set up, the name, address, and terms for each creditor are recorded on a separate ledger card. 20- Posting to the Accounts Payable . | CHAPTER TWENTY THE ACCOUNTS PAYABLE LEDGER 1. Post to the Accounts Payable ledger. 2. Prepare a schedule of Accounts Payable. 3. Record transactions involving notes payable. THE ACCOUNTS PAYABLE LEDGER Objectives: 20- The Accounts Payable Ledger Businesses use special ledgers like the Accounts Payable ledger to be more efficient in their financial operation. Separate accounts are used for each creditor. 20- The Accounts Payable Ledger (continued) All accounts for creditors can be placed in the Accounts Payable ledger. Accounts Payable ledgers are known as subsidiary ledgers. 20- Posting To the Accounts Payable Ledger Entries should be posted to the Accounts Payable ledger on a daily basis. Up-to-date information is critical for the operation of a business. 20- Posting to the Accounts Payable Ledger (continued) When the ledger is set up, the name, address, and terms for each creditor are recorded on a separate ledger card. 20- Posting to the Accounts Payable Ledger (continued) Each transaction listed in the purchases journal is posted individually to a creditor’s account in the Accounts Payable ledger. 20- Posting to the Accounts Payable Ledger (continued) If a creditor’s account already has a balance when a purchase is posted, the amount of the purchase must be added to the previous balance. 20- Posting to the Accounts Payable Ledger (continued) Each transaction listed in the Accounts Payable Debit column of the cash payments journal is posted individually to a creditor’s account in the Accounts Payable ledger. 20- Posting to the Accounts Payable Ledger (continued) Each time Accounts Payable is debited or credited in the General Journal, the entry is posted individually to a creditor’s account in the Accounts Payable Ledger. 20- Proving the Accounts Payable Ledger At the end of the month, the Accounts Payable ledger must be proved. To do this, a schedule of Accounts Payable is prepared. 20- Proving the Accounts Payable .
