How is a subsidiary ledger different from accounts receivable ledger?

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.

Which accounts have subsidiary ledgers?

Examples of subsidiary ledgers are:

• Accounts payable ledger.
• Accounts receivable ledger.
• Fixed assets ledger.
• Inventory ledger.
• Purchases ledger.

Which accounts are included in the accounts receivable ledger?

The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business….What is the Accounts Receivable Ledger?

• Invoice date.
• Invoice number.
• Customer name.
• Identifying code for item sold.
• Sales tax.
• Total amount billed.
• Payment flag (states whether paid or not)

What is the purpose of subsidiary ledger?

A subledger or subsidiary ledger provides the details that make up the balance of specific general ledger accounts. Because general ledger accounts only provide an ending balance for each particular account, a subsidiary ledger is used to provide the details that result in that general ledger balance.

How many 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.

What is a subsidiary ledger What are the advantages of using subsidiary ledgers?

The advantages of using subsidiary ledgers are that they: Permit transactions affecting a single customer or single creditor to be shown in a single account, thus providing necessary up-to-date information on specific account balances.

What is a subsidiary ledger in accounts payable?

An accounts payable subsidiary ledger is an accounting ledger that shows the transaction history and amounts owed to each supplier and vendor. The subsidiary ledger records all of the accounts payables that a company owes.

What is an accounts payable subsidiary ledger?

An accounts payable subsidiary ledger is an accounting ledger that shows the transaction history and amounts owed to each supplier and vendor. The subsidiary ledger records all of the accounts payables that a company owes. The payment terms are typically 30, 60, or 90 days.

What is the difference between subsidiary ledger and control account?

A subsidiary account is an account that is kept within a subsidiary ledger, which in turn summarizes into a control account in the general ledger. A control account is a summary-level account in the general ledger that contains aggregated totals.

What are 2 benefits of maintaining a subsidiary ledger for accounts receivable?

(1) Its use aids in the posting process since the totals for Cash, Sales Discounts, Accounts Receivable, and Sales are all recorded in the general ledger only at the end of the month; and (2) it allows all accounts receivable credits to be posted to the appropriate subsidiary ledger accounts daily.

What are some advantages of having accounts receivable subsidiary ledgers?

Advantages of an Accounts Receivable Subsidiary Ledger The accounts receivable subsidiary ledger can provide insight into customer demographics by profitability, prevent internal fraud, monitor past-due obligations, organize different aspects of revenues, and avoid customer overpayments.

What is subsidiary record?

A customer record is a subsidiary account within the accounts receivable ledger, which in turn comprises the detail for the accounts receivable control account in the general ledger. The customer subsidiary account reveals the detail for the amount that is owed to the company by specific customers.

Does accounts recievable have a debit balance?

An accounts receivable credit balance is the opposite of a debit balance, even though both are included on the balance sheet, since only the debit balance will include overpayments on accounts held by customers.

What is the definition of accounts receivable ledger?

Definition: The accounts receivable ledger, also called the customers ledger, is a subsidiary ledger that lists all the customers that owe money to the company along with their current balances . In other words, the A/R ledger is a summary of all current and outstanding accounts receivable at the end of a period.

What is accounts receivable Register?

Accounts Receivable Register. The Accounts Receivable Register report allows you to identify any errors before posting AR transactions or provides you with a permanent record of the transactions posted. In the staff profile, staff must be assigned to a security group that is granted View functional rights for the following:

What is a general ledger template?

General Ledger Template A general ledger template is an account or record used to sort and store balance sheet and income statement transactions.