A subsidiary ledger is a special ledger designed to provide information about accounts that would not normally be found in a general ledger. To remain in balance, the total of all accounts listed in a subsidiary ledger must match the total summary balance that appears in the general ledger.

What is the relationship between an accounts payable subsidiary ledger and the accounts payable general ledger account?

The accounts payable subsidiary ledger details the exact amount owed to each creditor. The sum of the amounts owed to each creditor listed in the accounts payable journal should equal the corresponding total in the general ledger control account.

How do you record a subsidiary ledger?

Record all transactions using the sales journal, purchases journal, cash receipts journal, cash disbursements journal, and the general journal and post to the accounts receivable and accounts payable subsidiary ledgers. Then prepare a schedule of accounts receivable and a schedule of accounts payable.

What is the difference between general ledger and subsidiary ledger?

A sub-ledger explains transactions and feeds into the general ledger. A sub-ledger has no chart of accounts. A general ledger has a few accounts in the following categories; assets, liabilities, income, expenses, and equity. They also have a few sub-accounts, such as accounts payable and accounts receivable.

What is another name for the accounts payable subsidiary ledger?

AP sub-ledger
The accounts payable subsidiary ledger is also commonly referred to as the AP sub-ledger or subaccount.

What is the relationship between a controlling account and subsidiary ledger?

What is the relationship between a controlling account and a subsidiary ledger? A controlling account summarizes all accounts in a subsidiary ledger. The balance of a controlling account equals the total of all account balances in its related subsidiary ledger.

When would you use the accounts payable subsidiary ledger?

An accounts payable (AP) is essentially an extension of credit from a supplier that gives a business (the buyer in the transaction) time to pay for the supplies. The subsidiary ledger records all of the accounts payables that a company owes. The payment terms are typically 30, 60, or 90 days.

What is the purpose of the accounts payable subsidiary ledger?

An accounts payable subsidiary ledger is an account book that tracks all expenses of a business and the number of suppliers that the business owes. This ledger shows the transaction history of a particular business and the amount of owes its suppliers, as well as current and outstanding accounts payable.

What are the two common examples of a subsidiary ledgers?

Examples of subsidiary ledgers are:

  • Accounts payable ledger.
  • Accounts receivable ledger.
  • Fixed assets ledger.
  • Inventory ledger.
  • Purchases ledger.

What are the two common examples of a subsidiary ledger?

What is the purpose of a subsidiary ledger?

A subledger or subsidiary ledger provides the details that make up the balance of specific general ledger accounts. Because general ledger accounts only provide an ending balance for each particular account, a subsidiary ledger is used to provide the details that result in that general ledger balance.

Why receivable needs a subsidiary ledger?

Advantages of an Accounts Receivable Subsidiary Ledger The accounts receivable subsidiary ledger can provide insight into customer demographics by profitability, prevent internal fraud, monitor past-due obligations, organize different aspects of revenues, and avoid customer overpayments.

What is difference between general ledger and subledger?

The key difference between General Ledger and Sub Ledger is that General ledger prepared by the company is the set of the different master accounts in which the transactions of the business are recorded from the related subsidiary ledgers, whereas, Sub ledger act as an intermediary account set that is linked with the …

How many types of common subsidiary ledgers are there?

three types
There are three types of subsidiary ledgers.

Is accounts receivable a subledger?

The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business. It is useful for segregating into one location a record of all amounts invoiced to customers, as well as all credit memos and (more rarely) debit memos issued to them, and all payments made against invoices by them.

What is the difference between a general ledger and a subsidiary ledger?

A sub-ledger has no chart of accounts. A general ledger has a few accounts in the following categories; assets, liabilities, income, expenses, and equity. They also have a few sub-accounts, such as accounts payable and accounts receivable. Sub-ledgers can have a large number of accounts within each main account.