Posting to the General Ledger
At the end of the business day, a clerk totals the accounts receivable or accounts payable entries and gives a summary report of all the entries that were made each day to the person who makes the entries in the general ledger.
For example, a summary of the day’s accounts payable transactions would look something like this.
If you were using the accrual method of accounting, you would have already recorded these expenses with a credit to the Accounts Payable account. When the bills are paid, the entry would be a debit to the Accounts Payable account to reduce that liability balance and a credit to the Cash in ...