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ACCOUNTING I
Chapter 11 Reading Guide
Answer the following questions as you read Chapter 11, pages 296-330.
LESSON 11:-1: Posting to an Accounts Payable Ledger
1.
What is a ledger that is summarized in a single general ledger account called?
 A subsidiary ledger
2.
What is the difference between the Accounts Payable Ledger and the Accounts Receivable
Ledger?
 Accounts Payable Ledger contains accounts for all vendors that money is owed to
 Accounts Receivable Ledger contains accounts for all customers that owe us money
3.
What is a controlling account?
 An account in a general ledger that summarizes all accounts in a subsidiary ledger.
4.
What does the first digit in a subsidiary ledger account number show?
 The division in which the controlling account appears in the general ledger
5.
What do the second two digits in a subsidiary ledger account number show?
 Shows the accounts location within the subsidiary ledger
6.
How are accounts arranged within the subsidiary ledger?
 In alphabetic order
7.
When a balance in the accounts payable ledger changes, what also has to change?
 The Accounts Payable account
Accounting I
Ch. 11 Reading Guide
8.
How is the Accounts Payable Ledger account form different from the General Ledger
account form? (compare form on page 300 to form on page 94)
 The Accounts Payable Ledger form only has a Credit balance column
9.
 The General Ledger form has a Debit and Credit balance column
What is written when a new vendor account is opened?
 The vendor name
 The vendor number
10.
On page 300, the form shows the word “Balance” in the Item column and has a check mark
in the Posting Reference column. What does this indicate?
 The balance was carried forward from a previous page rather than posted from a journal
11.
On page 301, “P11” is written in the Posting Reference column of a vendor’s account. What
does this indicate?
 The posting came from Purchases Journal, page 11
12.
Why do businesses usually post often to the Accounts Payable ledger?
 Posting keeps vendors balances up-to-date
13.
What is the abbreviation used in the Post. Ref. Column when posting from the Cash
Payments journal? What does the number that goes with it represent?
 CP for Cash Payments
 The page number of the journal
14.
What is a Schedule of Accounts Payable?
 A listing of vendor accounts, account balances, and total amount due from all vendors
15.
How do you prove the balance of the Schedule of Accounts Payable is accurate?
 By comparing it to the Accounts Payable account in the General Ledger. They must be the
same amount.
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Accounting I
LESSON 11-2: Posting to an Accounts Receivable Ledger
16.
Ch. 11 Reading Guide
If the customer number is 110, what does the first digit indicate?
 The “1” indicates this is an asset and is related to the account Accounts Receivable
17.
Why does the Accounts Receivable customer form (pg. 308) have a Debit balance column rather
than a Credit balance column?
 Because Accounts Receivable is an asset, and assets normally have a debit balance.
18.
From which column on the Sales journal, is an amount posted to the Accounts Receivable
Ledger?
 Accounts Receivable Debit column
19.
What is the last step in posting from a sales journal to an accounts receivable ledger customer
account?
 Write the customer number in the Post. Ref. column of the sales journal to show the amount has
been posted.
20.
What is a Schedule of Accounts Receivable?
 A listing of customer accounts, account balances, and total amount due from all customers.
LESSON 11-3: Posting from Journals to a General Ledger
21.
When carrying a balance forward from a previous general ledger page, why is a check mark
placed in the Post. Ref. column of the general ledger card next to the word Balance?
 To show that the amount has been carried forward from a previous page and is not a posted
amount
22.
When posting from the Cash Payments journal, how are amounts from the General column
posted differently than the amounts in the Special columns?
 Special columns only post the totals at the end of the month
 Amounts in the General column are posted individually to the account listed in the account title
column
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Accounting I
Ch. 11 Reading Guide
23. What does the diagonal line in the Posting Reference column of a General Journal indicate (see
page 318)?
 That an amount should be posted to the general ledger and a subsidiary ledger
LESSON 11-4: Posting Special Journal Totals to a General Ledger
24.
The total amount of the Purchases journal is posted to which accounts at the end of the month?
Are these totals debits or credits?
 Purchases as a debit
 Accounts Payable as a credit
25.
What is the last step in posting from a Purchases Journal?
 Write the account numbers posted to in parentheses below the total
26.
When posting from the Cash Payments journal, why are checkmarks placed underneath the
totals of the General Debit & Credit columns? (see page 324)
 To indicate that these totals are not to be posted (they were already posted individually)
27.
In what order should journals be posted?
 Sales, purchases, general journal, cash receipts, then cash payments
28.
Even though it is important to post from journals in a specific order, something strange can
happen to your general ledger accounts. What is different (see FYI, pg. 325)
 Sometimes the entries will be out of chronological order
LESSON 11-5: Correcting Errors in Subsidiary Ledger Accounts
29.
Assume you accidentally posted an amount to the wrong customer account. You create a
correcting entry to fix the error. You do not place a slash (/) in the posting reference column.
Why is not necessary?
 Because the error does not affect a general ledger account, only a subsidiary ledger account
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