Question

The Leslie Grill purchased food on account from several suppliers during June as follows:

June	Supplier	Amount
4 6 12 15 21 25 30	Bates Meats Lash Dairy Jake’s Frozen Foods Lash Dairy Bates Meats Lash Dairy Jake’s Frozen Foods	$ 200 300 400 500 600 200 300

1. What is the balance of the accounts payable subsidiary ledger for Bates Meats?

2. What is the balance of the accounts payable subsidiary ledger for Lash Dairy?

3. What is the balance of the accounts payable subsidiary ledger for Jake’s Frozen Foods?

4. What is the balance of the accounts payable control account on June 31 (after posting the total from the purchases journal to the accounts payable control account)?

5. For all the postings above, is the balance for accounts payable on Debit or Credit side?

Answer 1

Solution:

Requirement: 1

Balance of the accounts payable subsidiary ledger for Bates Meats = $800 [ $200+ $600]

Requirement: 2

Balance of the accounts payable subsidiary ledger for Lash Dairy = $ 1,000 [$300 +$500+$200]

Requirement: 3

Balance of the accounts payable subsidiary ledger for Jake’s Frozen Foods = $ 700 [$400 +$300 ]

Requirement: 4

Balance of the accounts payable control account on June 31 = $ 2,500 [ $ 800 +$ 1000 +$ 700]

Requirement: 5

Balance for Accounts Payable on Credit Side.

1) Accounts Payable is a liability and its normal balance is credit balance and shown under credit side.