Chapter 12 Outline

• Explain what a subsidiary ledger is and list the ones that we will be using as we post transactions from the journal to the ledgers? Subsidiary Ledger- Ledger that is summarize in a single account. And will be using Accounts Payable Ledger-Subsidiary ledger that contains only accounts only accounts for vendors from items are purchased of bought on account. Accounts Receivable Ledger- Subssidiary ledger that contains only an account from charge customer.
• Explain what a controlling account is list the ones that we will be using? Account in a general ledger that summarizes all accounts in a subsidiary ledger. We will use accounts payable and accounts receivable.
• Explain where contrlling accounts are maintained?Controlling accounts are maintained in the ledger.
• What is the relationship between a controlling account and a subsidiary ledger? Subsidiary ledgers are contained within controlling accounts.
• Identify in writtting the two schedules that we will prepare? A schedule of accounts payable is prepared after all entries in a journal are posted. A listing of vendor accounts, account balances, and the total amount due all vendors.
• List the rules for posting a journal's column totals? The rules for posting a jornal's column totals are, you add up all the accounts and then post that amount to the controlling account in the ledger.
• Explain why the 3-column account form used in an accounts receivable ledger has a Debit Balance column? The reason the 3-column account receivable ledger has a debit balance column is becausse assets have a normal balnce of debit.
• What is the tittle of the balance amount column of the accoutns payable ledger form and why is that tittle used? The tittle of the balance amount column of the accounts payable ledger is vendor because that is the company that you owe money to.
• List the stpesfor starting a new page in the accounts payable ledger?

1. Write the date

2. Write the journal page number

3. Write the credit amount

4. Add the amount in the credit column

5. Write the vendor number

• List the steps for posting to the accounts receivable ledger?

1. Write the date

2. Write the journal page number

3.Write the debit amount

4. Add the amount in the debit column

5. Write the customer number