CHAPTER 12

1)Subsidiary ledger- a ledger that is summarized in a single general ledger account.
*It only contains accounts for vendors from whom items are purchased or bought on account which are accounts payable ledger.

2)Controlling account- an account in a general ledger that summarizes all accounts in a subsidiary ledger.

3) The controlling accounts are maintained in a general ledger

4) The balance of a controlling account equals the total of all accounts balances in its related subsidiary ledger.

5) Schedule of accounts payable and schedule of accounts receivable.

6) -General amount column totals ARE NOT posted.
-Special amount column totals ARE posted.

7) The Accounts Receivable accounts have a normal balance on the debit side because they are assets. Assets have a normal debit balance.

8) -The normal balance column has to be on the credit side, because of it being a liability

9)New page in the accounts payable ledger

1. Write the vendor name, African Importers, on the Vendor line.
2. Write the vendor number, 220, on the Vendor No. line.
3. Write the date, 20-, Nov. 1, in the Date column
4. Write the word Balance in the Item column.
5. Place a check mark in the Post. Ref. column to show that the amount has been carried forward from a previous page rather than posted from a journal.
6. Write the account balance, $8523.02, in the Credit Balance column.

10)Posting to the accounts receivable ledger.

1. Write the date, 3, in the Date column of the account.
2. Write the journal page number, 21, in the Post. Ref. column of the account.
3. Write the debit amount, $864.96, in the Debit column of the account for Children's Paradise.
4. Add the amount in the Debit column to the previous balance in the Debit Balance column ($318.00 + $1,182.96). Write the new account balance, $1,182.96, in the Debit Balance column.
5. Write the customer number, 120, in the Post. Ref. column of the journal. The customer number shows that the posting for this entry is complete.