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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.
What else can I help you with?
What was heath ledgers favorite colour?
Purple
What is heath ledgers fathers name?
It was Andrew Heath.
What was heath ledgers full name?
Heath Andrew Ledger
What was heath ledgers jobs before acting?
He washed cars to earn money.
Where was heath ledgers body found?
The body of Heath Ledger was found in a hotel.
What are the main ledgers used for bookkeeping in a business organization?
the main ledgers include-the sales,purchases and general ledger
What is the population of Ashby St Ledgers?
The population of Ashby St Ledgers is 166.
The amount of money a business has to spend on accounting determines the number of ledgers used in an accounting system?
false
What is the plural of ledger?
Ledgers.
What are controlling accounts and subsidiary ledgers?
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 used to check the accuracy of those entries.
What tools did a Medieval Thatcher need to make roofs?
they used leggets,ledgers,spars and brotches hope it helped
What records are used for accounting?
Accounting records include ledgers, invoices, receipts, correspondence with tax agencies, etc.
How many types of ledgers are there?
3
What is self balancing ledger?
Self balancing ledgers is system in which two or more ledgers are balanced through making general or nominal ledger.
Who was heath ledgers dad?
Kim Ledger :)
Is heath ledgers mother dead?
no.. she is alive.
What is heath ledgers favorite color?
Was. It was purple.
