- How many types of common subsidiary ledgers are there?
- Which account is least likely to have a subsidiary ledger?
- Is Accounts Receivable a subledger?
- What is the purpose of subsidiary ledgers?
- For what type of account are subsidiary ledgers needed and why?
- What are the advantages of using control accounts?
- What is the difference between general and subsidiary ledger?
- How many subsidiary ledgers are there?
- What does subsidiary mean?
- How do you create a subsidiary ledger?
- What is the relationship between a controlling account and a subsidiary ledger?
- Why do you post a purchase on account to two different ledgers?
How many types of common subsidiary ledgers are there?
Subledger eliminates the chances of fraud and errors, and it can be segregated into three types- fixed asset sub-ledger, accounts receivable sub-ledger, and accounts payable sub-ledger.
Sub ledgers are complicated, and it is highly expensive to maintain too..
Which account is least likely to have a subsidiary ledger?
CardsTerm Which of the following is a business resource?Definition Raw Material, Labor, InformationTerm In general, a special journal would not be used to recordDefinition depreciationTerm Which account is least likely to have a subsidiary ledger?Definition sales230 more rows•Sep 12, 2013
Is Accounts Receivable a subledger?
The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business.
What is the purpose of subsidiary ledgers?
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 so on.
For what type of account are subsidiary ledgers needed and why?
Most accounts in the general ledger are not control accounts; instead, individual transactions are recorded directly into them. Subsidiary ledgers are used when there is a large amount of transaction information that would clutter up the general ledger. … Thus, there is no need for a subsidiary ledger in a small company.
What are the advantages of using control accounts?
Advantages of Control AccountsProvides a checking mechanism to detect errors and fraud at an early stage;Removes bulky details from the general ledger;Larger companies can set up accounting departments for specific areas;Trial balance figures provide a summary of totals, rather than individual accounts;More items…•
What is the difference between general and subsidiary ledger?
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.
How many subsidiary ledgers are there?
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.
What does subsidiary mean?
In the corporate world, a subsidiary is a company that belongs to another company, which is usually referred to as the parent company or the holding company. The parent holds a controlling interest in the subsidiary company, meaning it has or controls more than half of its stock.
How do you create a subsidiary ledger?
Record all transactions using the sales journal, purchases journal, cash receipts journal, cash disbursements journal, and the general journal and post to the accounts receivable and accounts payable subsidiary ledgers. Then prepare a schedule of accounts receivable and a schedule of accounts payable.
What is the relationship between a controlling account and a subsidiary ledger?
What is the relationship between a controlling account and a subsidiary ledger? A controlling account summarizes all accounts in a subsidiary ledger. The balance of a controlling account equals the total of all account balances in its related subsidiary ledger.
Why do you post a purchase on account to two different ledgers?
Using separate ledgers means that each transaction can be recorded in two or more different places. If you use a manual accounting system, the numbers can be transposed during the recording process. You can check your work by adding up the amounts in the debit column and the credit column.