10
Posting the Cash Payments Journal
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The procedures for posting the cash payments journal are similar to those for posting the cash receipts journal. Specifically, the amounts recorded in the Accounts Payable column are posted individually to the subsidiary ledger and in total to the control account. Purchase Discounts and Cash are posted only in total at the end of the month. When a transaction is recorded in the Other Accounts column, it is posted individually to the appropriate account(s) affected. No totals are posted for this column.
The posting of the cash payments journal is shown in Illustration 6-17. Note that the symbol CP is used as the posting reference for this journal. After postings are completed, the equality of the debit and credit balances in the general ledger should be determined. In addition, the control account balances should agree with the subsidiary ledger total balance.
Effects on General Journal
Special journals for sales, purchases, and cash substantially reduce the number of entries that are made in the general journal. Only transactions that cannot be entered in a special journal are recorded in the general journal. For example, the general journal may be used to record such transactions as granting of credit to a customer for a sales return or allowance, receipt of credit from a supplier for purchases returned, acceptance of a note receivable from a customer, and purchase of equipment by issuing a note payable. In addition, correcting, adjusting, and closing entries are made in the general journal.
