Ledger of Expenditures

What Is an Accounts Payable Register?

The accounts payable ledger is a supplementary ledger that details the various creditor accounts. The creditors’ ledger is another name for this book.

The accounts payable ledger is an example of a specialized subsidiary ledger.

Ledger of Accounts Payable Explanation

When a company’s number of creditors is low, it may be feasible to keep individual Accounts Payable accounts for each one.

A big and bulky ledger would arise if a company had to keep track of its many creditors in a separate ledger.

Consider an organization that regularly buys on credit from 200 separate lenders. Imagine then how big its ledger would be if, in addition to the other accounts, one were to be kept for each creditor.

Keeping track of everything in just one ledger would be impractical. A trial balance or financial statements would be challenging to compile in such a scenario.

Creditors’ accounts are therefore typically kept in a separate ledger to avoid these complications. A subsidiary ledger is a secondary bookkeeping record that keeps track of only one specific kind of account.

An accounts payable ledger, often known as a creditors’ ledger, is a subsidiary ledger that keeps track of money owed to creditors.

When using subsidiary ledgers, the main ledger is called the general ledger and it contains all the accounts necessary to compile financial statements.

Payment Receipts Journal Template

The purpose of the accounts payable ledger is to keep track of how much money is owed to various creditors. The standard accounting form consists of the three columns depicted below.

Payable Accounts Ledger

Credits are common in liability accounting. As a result, there will almost always be a positive balance in the accounts of those who are owed money.

Therefore, the general ledger’s four-column account form isn’t the best fit for creditors’ accounts, but the three-column form is.

Generally speaking, account numbers are not issued to accounts in the payables ledger. To facilitate the creation of new accounts and the deletion of dormant ones, they have been reorganized into alphabetical order.

The Accounts Payable account in the general ledger summarizes the balances of creditors’ accounts in the accounts payable ledger.

That is to say, once everything has been posted, the total amount owed to creditors will be reflected in the Accounts Payable account. As a result, we may say that the Accounts Payable account is in charge of the payables journal.

A controlling account is a summary account in the general ledger that also includes information from the subsidiary ledger it controls.


The Accounts Payable controlling account in Judy’s general ledger serves as a summary of the details recorded in the Accounts Payable subsidiary ledger. See how they connect in the diagram below.

Making Entries in the Payables Ledger

Each purchase recorded in the purchases journal must be matched with a separate entry in the subsidiary ledger maintained for the creditor from whom the transaction was made.

The five-step method of creditor account posting. The next illustration displays the posting of a journal entry by Lakeside on 2 November reflecting a purchase from Key Suppliers to the accounts payable ledger.

Here’s how to get your entry up on the site:

First, fill out the Date field in the Key Suppliers ledger entry.

Second, write $575 into the Credit column of Key Suppliers’ account to reflect the journal entry.

Third, update the Balance column with the result of computing the account balance for Key Suppliers.

Key Suppliers’ account balance is $575 because there was no previous balance. If there was a previous balance, it would have been updated by adding the current posting of $575.

Fourth, in the PR column of Key Suppliers’ account, enter P1 (purchases journal, page 1).

Fifth, mark the PR column in the purchasing log with a check.

Each individual entry of the accounts payable ledger has been verified, as shown by the corresponding checkmark. The checkbox represents the absence of a numerical identifier for an entry in the subsidiary ledger.

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