These amounts are posted to the individual creditor's accounts in the accounts payable subsidiary ledger. Accounts payable (A/C P.A) column represents the amounts paid to creditors.Total of purchases column is posted as debit to the purchases account in the general ledger.Total of discount column is posted as a credit to the discount account in the general ledger.Total of cash column is posted as a credit to the cash account in the general ledger.The procedure for posting the cash payment journal to ledger accounts is described below: Solution Posting Cash Payment Journal to Ledger Accounts May 31: Purchased merchandise for cash $1,000.May 27: Purchased merchandise for cash $780.May 21: Paid Sam Corporation $1,550 cash in settlement of $1,600.$1,880 cash and received discount of $120. May 01: Paid rent for the month amounting to $900.Record the following cash transactions for 2016 in a cash payment/disbursement journal. The type of format chosen depends on the needs of the individual business. Like a cash receipts journal, various formats are used for cash payment journals. Format of Cash Payment Journal or Cash Disbursement Journal Given that the basic posting procedures are the same as those for the other journals, the actual postings are not shown in the exhibit. They can be posted daily, monthly, or at other convenient intervals. The accounts in the other columns must be posted individually. All the totals, except those in the other columns, are posted to the appropriate general ledger accounts. Entries to the Accounts Payable account should be posted daily to the subsidiary accounts payable ledger.Īt the end of the month, all amount columns are summed. The cash payment journal is also posted in two stages. Thus, the entries are entered sequentially into the cash payment journal as they occur. The entries in the cash payment journal are recorded and posted in a similar manner to those in the cash receipts journal. June 30: Loan payment of $120, of which $90 is interest.Smith's Bakeries for invoice dated June 18.
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