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Accounts payable subsidiary ledger
Accounts are designed to show balance owed to every creditor. Liability accounts generally have credit balances. Accounts are not assigned numbers however are arranged in alphabetical order to make it easy to add new accounts and remove inactive accounts.
When all posting is complete, balance of the Accounts Payable account would equal the sum of balances of the creditors' accounts. This is known as "controlling" account.
When posting, be careful that BOTH subsidiary ledger and general ledger are posted. Daily posting is done to individual ledger accounts. Totals are posted at the end of the accounting period, usually a month.
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Define Carriage outwards.
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