Two common subsidiary ledgers: In subsidiary ledgers, individual ledger accounts are maintained in alphabetical order. Detail data of subsidiary ledger are accounted for in the general ledger in brief.
What are the 5 ledger divisions?
General ledger representing the five main account types: assets, liabilities, income, expenses, and capital.
What is subsidiary ledger example?
A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. For example, an accounts receivable subsidiary ledger (customers’ subsidiary ledger) includes a separate account for each customer who makes credit purchases.
What are the 5 major types of accounts in the 5 marks general ledger?
General Ledger Accounts
- Assets (Cash, Accounts Receivable, Land, Equipment)
- Liabilities (Loans Payable, Accounts Payable, Bonds Payable)
- Stockholders’ equity (Common Stock, Retained Earnings)
- Operating revenues (Sales, Service Fees)
- Operating expenses (Salaries Expense, Rent Expense, Depreciation Expense)
What is the difference between a general ledger and a subsidiary ledger?
A sub-ledger has no chart of accounts. A general ledger has a few accounts in the following categories; assets, liabilities, income, expenses, and equity. They also have a few sub-accounts, such as accounts payable and accounts receivable. Sub-ledgers can have a large number of accounts within each main account.
What are the different types of subsidiary ledgers?
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.
Which is an addition to the general ledger?
A subsidiary ledger is an addition to an expansion of the general ledger. 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.
Where are accounts receivable and accounts payable kept in a subsidiary ledger?
Where subsidiary ledgers are maintained, the individual accounts relating to accounts receivable and accounts payable are not kept in detail in general ledger. A subsidiary ledger is an addition to an expansion of the general ledger. Accounts receivable subsidiary ledger where data relating to individual buyers are kept.
Are there any limitations to a subsidiary ledger?
Following are the few limitations – It may contain undetected errors. Subsidiary ledgers do not assure the accuracy of ledger accounts. The items may be posted to irrelevant accounts, which may add to errors in the individual ledgers and ultimately impact the overall accuracy of the subsidiary ledger.
