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A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. The general ledger account that summarizes a subsidiary ledger's account balances is called a control account or master account. For example, an accounts receivable subsidiary ledger (customers' subsidiary ledger) includes a separate account for each customer who makes credit purchases. The combined balance of every account in this subsidiary ledger equals the balance of accounts receivable in the general ledger. Posting a debit or credit to a subsidiary ledger account and also to a general ledger control account does not violate the rule that total debit and credit entries must balance because subsidiary ledger accounts are not part of the general ledger; they are supplemental accounts that provide the detail to support the balance in a control account.
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What you meant by Self balancing system?
when separate ledgers are maintained for trade debtors and trade creditors ,the debit and credit aspect of certain transactions will note appear in the same ledger Eg: in case of credit sales ,the credit aspect (Sales account) will appear in general ledger whereas the debit aspect (personal account of debtor)will appear in debtors ledger .Take another Eg.like cash discount allowed by a creditor .The credit aspect (personal account of the creditor )will appear in creditors ledger .Thus no ledger is self balancing and it is not possible to prepare a separate trial balance for each ledger .Hence in ,in order to make each ledger self -balancing it is necessary that the corresponding debit and credit aspects are fully "adjustment accounts " in each ledger . the adjustment account helps in completing the double entry in each ledger and making it self balancing . The adjustment account opens in various ledgers are; 1 ) general ledger adjustment account(in debtors ledger) 2 ) general ledger adjustment account(in creditors ledger) 3 ) debtors ledger adjustment account (in general ledger) 4 ) creditors ledger adjustment account (in general ledger)
What is the trail balance?
If you are referring to a Trial Balance in Accounting, the Trial Balance is a list of nominal ledger (general ledger) accounts contained in the Ledger of a Business.
Who bought Union Fidelity Insurance Company?
WE are a subsidiary company of the General Eectric Company (GE).
What are the most common input files an documents for a general ledger?
Most all business accounts are considered general ledger. Business accounts could include accounts receivable, accounts payable, customer order logs logs, merchant order logs, and the list can go on.
What are common input files for general ledger?
Common input files for the general ledger include Accounts Payable, Accounts Receivable, Payroll, and Payroll Tax Liabilities. Other accounts will become necessary depending on the type of business, like Amortization of Assets used in the business.
Do subsidiary ledger systems need to be reconciled with the general ledger?
yes
An account in a general ledger that summarizes all accounts in a subsidiary ledger?
Income summary
What is an account in a general ledger that summarizes all accounts in a subsidiary ledger?
Income summary
Why AP ledger requires a subsidiary ledger?
AP Ledger requires a subsidiary ledger to help keep the clutter down in the general ledger. The standard ledger can often fill up with a large amount of activity, making it difficult to handle.
What purpose does a subsidiary ledger serve?
A subsidiary ledger contains the details to support a general ledger control account. A subsidiary ledger records all the detailed data for any general ledger account that has many individual subaccounts. What are some commonly used subsidiary ledgers? accounts receivable inventory accounts payable
What are subsidiary ledgers used for?
Subsidiary ledgers contain the detail that support the general ledger accounts. For example, the general ledger account, "Accounts Receivable" might have a balance of $230. This is the total of all the subsidiary accounts receivable ledgers. So, there would be a subsidiary ledger for John Smith (balance $100), Sam Jones (balance $80) and a subsidiary ledger for George Washington (balance $50). When George pays us the $50 he owes us, we would record it in his subsidiary ledger. That brings George's balance down to $0 and the general ledger account would now be $180 (the total of the two subsidiary ledgers with balances in them). Reasons for subsidiary ledgers: You have to record George's payment as a reduction in what George owe us. If you posted his $50 payment in the general ledger, very quickly you would forget who paid it to you. Also, by looking at the entries in George's subsidiary ledger, you can see what he has charged, what he has paid, and when he has paid. The general ledger is nothing more than the total of the balances in the subsidiary ledgers. The subsidiary ledgers have all the detail.
Why ap ledger required a subsidiary ledgers?
AP Ledger requires a subsidiary ledger to help keep the clutter down in the general ledger. The standard ledger can often fill up with a large amount of activity, making it difficult to handle.
What are ledgers used for?
Subsidiary ledgers contain the detail that support the general ledger accounts. For example, the general ledger account, "Accounts Receivable" might have a balance of $230. This is the total of all the subsidiary accounts receivable ledgers. So, there would be a subsidiary ledger for John Smith (balance $100), Sam Jones (balance $80) and a subsidiary ledger for George Washington (balance $50). When George pays us the $50 he owes us, we would record it in his subsidiary ledger. That brings George's balance down to $0 and the general ledger account would now be $180 (the total of the two subsidiary ledgers with balances in them). Reasons for subsidiary ledgers: You have to record George's payment as a reduction in what George owe us. If you posted his $50 payment in the general ledger, very quickly you would forget who paid it to you. Also, by looking at the entries in George's subsidiary ledger, you can see what he has charged, what he has paid, and when he has paid. The general ledger is nothing more than the total of the balances in the subsidiary ledgers. The subsidiary ledgers have all the detail.
Who can operate subsidiary general ledger account?
why is the tertiary sector in decline
What do you mean by Secondary books of account?
Secondary book are also called Ledger.These can be broadly classified as Main Ledger and Subsidiary Ledger. Subsidiary Ledger further classified into following three types: General ledger,Debtors ledger and Creditor ledger.
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.
What are the two general ledger accounts that may act as control accounts for a subsidiary ledger?
accounts receivable and accounts payable
