© 2014 cengage learning. all rights reserved. posting from a purchases journal to an accounts...
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© 2014 Cengage Learning. All Rights Reserved. Totaling and Ruling a Purchases Journal SLIDE 3 LO7 Lesson Single Rule 5 5 Total Amount 2 2 Date 6 6 Double Rule 4 4 Total Column 3 3 TotalTRANSCRIPT
© 2014 Cengage Learning. All Rights Reserved.
Posting from a Purchases Journal to an Accounts Payable Ledger
● Each entry in the purchases journal affects the account of the vendor named in the Account Credited column● Amount on each line of the purchases journal posted as a
credit to a vendor account in the accounts payable ledger● When several journals are used, an abbreviation is
used to show from which journal the posting is made● P is the abbreviation used for purchases journal
● P11 means page 11 of purchases journal
SLIDE 1
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1. Write the date in the Date column of the vendor account.
4. Add the amount in the Credit column to the previous balance in the Credit Balance column and write the new account balance in the Credit Balance column.
2. Write the journal page number in the Post. Ref. column of the account.3. Write the credit amount in the Credit column of the vendor account.
Posting from a Purchases Journal to an Accounts Payable Ledger
SLIDE 2
LO7
Lesson 9-3
5
4
31
5. Write the vendor number in the Post. Ref. column of the journal.
2
© 2014 Cengage Learning. All Rights Reserved.
Totaling and Ruling a Purchases Journal
SLIDE 3
LO7
Lesson 9-3
1 Single Rule
5 TotalAmount
2 Date 6 Double Rule4 Total Column3 Total
© 2014 Cengage Learning. All Rights Reserved.
Totaling and Ruling a Purchases Journal
● Calculating total does more than report total value of inventory purchased on account during a period of time● Can post all purchases on journal page to general
ledger using single journal entry● Special journals significantly reduce time required to
post transactions● Total amount of purchases journal is posted to two
general ledger accounts, Purchases and Accounts Payable
SLIDE 4
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Posting the Total of a Purchases Journal to a General Ledger
SLIDE 5
LO7
Lesson 9-3
2Journal Number
5Account Number
1 Date 4Account Balance3 Debit or Credit
5
4
31 2
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Lesson 9-3 Audit Your Understanding
1. Why should a business frequently post from the purchases journal to the accounts payable ledger?
SLIDE 6
ANSWER
Posting frequently to the accounts payable ledger helps ensure that vendor accounts are paid on time and that the business can continue purchasing goods and services on account.
Lesson 9-3
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Lesson 9-3 Audit Your Understanding
2. Why is it important to record a posting reference in the accounts payable ledger?
SLIDE 7
ANSWER
It provides an audit trail that allows an employee to trace the transaction back to the journal and page number.
Lesson 9-3
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Lesson 9-3 Audit Your Understanding
3. Why is the vendor number written in the Post. Ref. column of the purchases journal?
SLIDE 8
ANSWER
To provide an audit trail to the account where the transaction was posted
Lesson 9-3
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MindTap
● Class Activity: 9-3 Worth Together● Before grading, evaluate one another’s work for
any mistakes● If everyone receives a 100%, air heads are
rewarded
SLIDE 9
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Closure
● What journal would you use if we did not purchase merchandise on account as an operating business?
SLIDE 10
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Use of Article:
● Read about other types of journals used by merchandising corporations
● Choose which journal you believe is used most frequently and support reasoning as to how you have come to that conclusion
SLIDE 11
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Think & Ink:
● What do stores offer you to entice you to shop at their place of business?
● Why do you think stores do this so often?
SLIDE 12