Accounting Types Of Subsidiary Ledgers


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A subsidiary ledger can be set up for virtually any general ledger account. However, they are usually only created for areas in which there are high transaction volumes, which limits their use to a few areas. Examples of subsidiary ledgers are: Accounts payable ledger Accounts receivable ledger Fixed assets ledger Inventory ledger Purchases ledger

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Two common subsidiary ledgers: Accounts receivable subsidiary ledger where data relating to individual buyers are kept. Accounts payable subsidiary ledger is due where data relating to individual creditors are kept. In subsidiary ledgers, individual ledger accounts are maintained in alphabetical order.

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The sub-division of the ledger into subsidiary ledgers is summarized in the diagram below. Impersonal Ledger The impersonal ledger records transactions relating to income, expenses, assets, liabilities and capital. The impersonal ledger is sub-divided as follows. Real Ledger The real ledger contains accounts relating to assets and liabilities.

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All accounts combined together make a ledger book. Predominantly there are 3 different types of ledgers; Sales, Purchase and General ledger. A ledger is also known as the principal book of accounts and it forms a permanent record of all business transactions. 1. Sales Ledger or Debtors’ Ledger

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The accounts payable subsidiary ledgers works the same way as accounts receivable with the control account of accounts payable and the subsidiary ledger a vendor ledger to provide a listing of everyone we owe. The purchases, payments, returns and allowances are recorded in the individual vendor accounts as well as in the accounts payable account.

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subsidiary ledger account. Financial Analysis generally includes a comparison of actual to budget for all revenue and expense categories. Variance analysis performed for SMH accounts is an example of a financial analysis. See page 6 for guidance A Subsidiary Ledger Review is an internal control activity that includes:

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What is the purpose of subsidiary ledgers? Definition of Subsidiary Ledger. A subsidiary ledger contains the details to support a general ledger control account.For instance, the subsidiary ledger for accounts receivable contains the information for each of the company's credit sales to customers, each customer's remittance, return of merchandise, discounts, and …

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Balance sheet accounts with subsidiary ledgers (sub-ledgers) include accounts receivable, inventory, fixed assets, and accounts payable. Balance sheet accounts reconciliation steps are: Compare the trial balance with the general ledger account. Correct any differences between the trial balance and general ledger

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Introduce general ledgers, and the need for subsidiary ledgers for a partnership set up as a merchandising business. Introduction of the need for subsidiary ledgers for accounts payable and accounts receivable accounts. Discussion of controlling accounts, the balance of a controlling account and its relationship to the individual subsidiary ledger.

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In this presentation, we’re going to talk about special journals and subsidiary ledgers. First, we’re going to list out the special journals and talk about when we would use them, why we would use them and how they fit into the accounting system. The special journals are basically going to group types of transactions. So […]

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The Ledger Concept. A ledger is a book or database in which double-entry accounting transactions are stored or summarized. A subsidiary ledger is a ledger designed for the storage of specific types of accounting transactions. If a subsidiary ledger is used, the information in it is then summarized and posted to an account in the general ledger

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Subsidiary ledgers are groups of accounts that are of the same type, such as each customer account that is totaled and posted in the balance of accounts receivable. The accounts receivable is the

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Types of Subsidiary Books. Cash Book: This is the subsidiary book for recording receipts and payment of money.The cash book is also a ledger for keeping the account of receipts and payment of cash, transactions. It is the only subsidiary book that is also a ledger; performing a double function. The Sales Daybook or Sales Journal: This is the subsidiary book for listing …

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“A subsidiary ledger is a group of accounts with a common characteristic. The accounts are assembled together to facilitate the accounting process by freeing the general ledger from details concerning individual balances.”. Using subsidiary ledgers

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Login. Join. Topics . Topic . Business . Study-set . The controlling account in the general ledger that summarizes the debits and credits to the individual customers accounts in the subsidiary ledger is entitled Explain what subsidiary ledgers are and give examples of three types of subsidiary ledgers that a business might use. Free

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Frequently Asked Questions

What are different types of ledgers?

There are three common types of ledger: general, purchase, and sales ledgers. Often all three of these are used together. The general ledger is the most elaborate, while purchase and sales ledgers record the transactions of only creditors and customers respectively.

What is an accounts receivable subsidiary ledger?

What is an 'Accounts Receivable Subsidiary Ledger'. An accounts receivable subsidiary ledger is an accounting ledger that shows the transaction and payment history of each customer to whom the business extends credit. The balance in each customer account is periodically reconciled with the accounts receivable balance in the general ledger,...

How to do a general ledger?

Instead, follow the steps below to post journal entries to the general ledger:

  • Create journal entries
  • Make sure debits and credits are equal in your journal entries
  • Move each journal entry to its individual account in the ledger (e.g., Checking account)
  • Use the same debits and credits and do not change any information
  • Calculate account balances in your general ledger

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