Which of the following is true of posting entries from a purchases journal to the general ledger?
A)The posting references are not mentioned in the subsidiary ledger.
B)The Accounts Payable balance in the general ledger should be less than the sum of the individual vendor balances in the subsidiary ledger.
C)The amounts in the Other Accounts DR column are posted individually to the specific accounts.
D)It is done on a daily basis for all the accounts.

Question

Quizplus · Accepted Answer

The amounts in the Other Accounts DR column are typically posted individually to the specific accounts in the general ledger. Choice A is incorrect because posting references should be mentioned in the subsidiary ledger to allow for easy tracing back to the original entry. Choice B is incorrect because the sum of the individual vendor balances in the subsidiary ledger should equal the Accounts Payable balance in the general ledger. Choice D is incorrect because posting from the purchases journal to the general ledger is typically done on a periodic basis (e.g. weekly or monthly) rather than daily.

Which of the Following Is True of Posting Entries from a Purchases