Question

Need an example, how to set up the General Ledger accounts, Accounts Receivable, and Accounts Payable accounts. And how to Journalized entries from the same Narrative of Transactions.   

Then, Post the general journal entries to the General Ledger, the Accounts Receivable Ledger, and the Accounts Payable Ledger. Use the Post Ref. column to ensure that each line item of the journal entries is posted correctly to each general ledger account. Please note that I need a sample example. Thanks.

Answer 1

General Ledger account is used to store the transactions happened in any company which can be used to prepare balance sheet and income statement. Examples are cash, account payable, accounts receivable etc . Let us take the sample transactions below:

1) On Jan 10^th provided services on account for $10000

2) On Jan 15^th Purchases supplies on account for $400

The journal entries for above are :

1) Accounts receivable (db)$10000

Service revenue (cr)$10000

2)Supplies (db)$400

Accounts payable(cr) $400

General Journal:

Date	Account title	Post Ref	Debit	Credit
Jan 10th	Accounts Receivable	100	$10000
Jan 10th	Service Revenue	101		$10000
Jan 15th	Supplies	110	$400
Jan 15th	Accounts payable	111		$400

Accounts Receivable:

Date	Post Ref	Debit	Credit	Balance
Jan 10th	100	$10000		$10000

Accounts Payable:

Date	Post Ref	Debit	Credit	Balance
Jan 15th	111		$400	$400