Chapter 12 outline

Subsidiary ledger- ledger that is summarized in a single general ledger account.
Accounts Payable Ledger- subsidiary ledger that contains only accounts for vendors from whom items ate purchased of bought on account.
Accounts Recivable Ledger- subsidiary ledger that contains only accounts form charge customer.
Controlling Account- account in a general ledger that summarizes all accounts in a subsidiary ledger. We will use accounts payable and accounts recivable. Controling accounts are maintained in the ledger.
Subsidiary ledgers are contained within controlling accounts.
A schedule of accounts payable is a list of vendor accounts, account balances, and total amounts due.
A schedule of accounts recivable is a list of customer accounts, account balances, and total amounts due.
The rules for posting a journal's column totals are, you add up all the totals of the accounts and then post that amount to the controlling account in the ledger.
The reason the 3-column accounts recivable ledger has a debit balance column is because assets have a normal balance of a debit.
The title of the balance amount column of the accounts payable ledger is vendor because that is the company that you owe money to.
The steps for starting a new page in the accounts payable ledger include writing the account title, number, and the date for the new page, write the word "balance" in the item column, place a "check mark" in the post reference column, then bring the account balance forward.