What do subsidiary ledgers do?

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 to ensure accuracy.

Which of the following is not a common example of a subsidiary ledger?

Which of the following is not a common example of a subsidiary ledger? reason: The sales journal is a journal, not a subsidiary ledger.

Which of the following is an example of a subsidiary ledger?

Examples of subsidiary ledgers are: Accounts payable ledger. Accounts receivable ledger. Inventory ledger.

What is a subsidiary ledger quizlet?

subsidiary ledger. an additional set of ledger accounts kept outside the general ledger,recording individual transactions for each individual debtor or creditor. control account.

What are the most common subsidiary ledgers?

Some commonly used subsidiary ledgers are accounts receivable subsidiary ledger, accounts payable subsidiary ledger or creditors’ subsidiary ledger, inventory subsidiary ledger, fixed assets or property or plant & equipment subsidiary ledger, projects subsidiary ledger, work in progress subsidiary ledger, and cash …

What is the relationship between general and subsidiary ledgers?

A general ledger is your master chart of accounts that shows a list of transactions, you cannot run a business without it. A sub-ledger explains transactions and feeds into the general ledger. You do not have to have a sub-ledger.

What is general and subsidiary ledger?

How many types of common subsidiary ledgers are there?

three types
There are three types of subsidiary ledgers.

Is payroll a subledger?

Payroll Subsidiary Ledger: In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses, and deductions. Payroll subsidiary ledger is used to manage both salaries and wages. You can record calculations & payments made to each of the employees in this sub-ledger.

What type of transactions are recorded in a cash receipts journal?

The cash receipts journal is used to record all transactions involving the receipt of cash, including transactions such as cash sales, the receipt of a bank loan, the receipt of a payment on account, and the sale of other assets such as marketable securities.

What is the source document for credit sales?

Credit sales are transactions where the goods are sold and payment is received at a later date. The source documents for the Sales journal are copies of all invoices given to the debtors.

How is a subsidiary ledger different from a general ledger?

A subsidiary ledger is a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger. A subsidiary ledger frees the general ledger from details of individual balances. A company would not likely use subsidiary ledgers for owner’s capital.

How is balance of control account in general ledger determined?

The balance of a control account in the general ledger must equal the composite balance of individual accounts in a related subsidiary ledger. Postings are made daily to the Accounts Receivable subsidiary ledger.

What does a general ledger accounting system do?

General ledger accounting systems are software programs that integrate the various accounting functions related to sales, purchases, cash receipts and disbursements, and payroll. True A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

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What do subsidiary ledgers do? 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 to ensure accuracy. Which of the following…