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Just like normal people don't have just one bill, companies don't have one bill. For that reason, having just one "Account Payable" account for all their bill can be confusing, inefficient, and can lead to fraud. So, they establish what is called a "sub-ledger", in this case it's "Accounts Payable ledger". That account will have multiple accounts payable accounts and the end balance is shown in the general ledger as just "Accounts Payable". For Ex. there could be one for Insurance, office supplies, salary, and other accounts payable, etc.
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What are 5 types of subsidiary ledgers?
accounts receivable ledger, accounts payable ledger, notes receivable ledger, notes payable ledger and equipment subsidiary ledger
To increase the balance in an accounts payable ledger?
To increase the balance in an accounts payable ledger you credit the account.
What is a subsidiary account for accounts payable?
the accounts payable account is on the general ledger and is generally comprised of many smaller vendor accounts which are listed and tracked separately in the "accounts payable subsidiary ledger". So each vendor would be a subsidiary account of the accounts payable ledger.
When a credit is posted to the accounts payable ledger what happens?
Accounts payable balance will increase
What are the two general ledger accounts that may act as control accounts for a subsidiary ledger?
accounts receivable and accounts payable
What are 5 types of subsidiary ledgers?
accounts receivable ledger, accounts payable ledger, notes receivable ledger, notes payable ledger and equipment subsidiary ledger
To increase the balance in an accounts payable ledger?
To increase the balance in an accounts payable ledger you credit the account.
What is a subsidiary account for accounts payable?
the accounts payable account is on the general ledger and is generally comprised of many smaller vendor accounts which are listed and tracked separately in the "accounts payable subsidiary ledger". So each vendor would be a subsidiary account of the accounts payable ledger.
What type of ledger is an accounts payable ledger?
Liability
When a credit is posted to the accounts payable ledger what happens?
Accounts payable balance will increase
What are the two general ledger accounts that may act as control accounts for a subsidiary ledger?
accounts receivable and accounts payable
Which accounts belong in accounts payable ledger?
belong to credits
Does an accounts payable ledger contain all of the balance sheet and income statements accounts?
No, the accounts payable ledger only contains information related to supplier accounts. The balance sheet and income statement accounts are contained in the general ledger.
What is the description for an accounts payable position?
An accounts payable position is called a Purchase Ledger Clerk
General ledger account?
There are several different accounts that are used in the general ledger. Some of these accounts include cash, accounts receivable, inventory, notes payable, accounts payable, and customer deposits.
When The AP ledger requires a subsidiary ledger?
A control account is an account found in the general ledger such as accounts receivable,Accounts Payable,inventory etc. The accounts are a summation of entries made in the subsidiary ledgers and are.When using a General Ledger, accounts such as Accounts Payable or Accounts Receivable are much easier to work with in the General Ledger if they have a "single" sum of all accounts, in other words.
Accounts payable ledger used in a complete sentence?
SM still has an accounts payable to the proctor and gamble company.
