PE 5-4A Accounts payable subsidiary ledger

The debits and credits from two transactions are presented in the following supplier’s (creditor’s) account:

NAME Newton Computer Services Inc.
ADDRESS 2199 Technology Place
                                  Post.
  Date        Item          Ref.                  Debit               Credit               Balance
Nov. 1    Balance                                                                                   9,400
       11    Invoice 75      P8                                            2,790                12,190
       21    Invoice 43    CP46                6,550                                          5,640
Describe each transaction and the source of each posting.

Answer:
Nov. 11. Made purchases of $2,790 on account from Newton Computer Services Inc. (Invoice No. 75).                    Amount posted from page 8 of the purchases journal.
         21. Paid $6,550 to Newton Computer Services Inc. on account (Invoice No. 43). Amount posted                      from page 46 of the cash payments journal.