In order to avoid details from the General ledger we create subsidiary ledgers. The combined account balance of a subsidiary ledgers brought in a single account of general ledger called control account or master account.

Example of Subsidiary Ledger

An examples of subsidiary ledger is Debtors subsidiary ledger or Accounts receivable subsidiary ledger. The total of all accounts in the subsidiary ledger posted in Accounts receivable ledger or debtors subsidiary ledger monthly or yearly.

Use of Subsidiary Ledger

The subsidiary ledger is extremely useful in large business organisations where large number of credit sales are happening. Such business has to deal with sales of goods to customers multiples payments from customers, sales returns etc. In such cases creating a separate department and creating a subsidiary ledger helps to manage accounts receivables so as to better customer services.

Some other subsidiary ledger

  • Accounts payable subsidiary ledger for managing sundry creditors.
  • Inventory Subsidiary ledger for dealing Individual products.
  • Plant & machinery subsidiary ledger for managing each machinery and plant

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!

Related pages

xl shortcut keys pdfaccounting meaning of debit and creditexample of sundry expensesthree golden rules of accountingsundry transactionsstock and debtors systembearer debentures definitiondouble entry for fixed assetswhat is contra entry explain with examplecorporate identification number cintds form 26qsample of bank reconciliation statementaccounting single entry systemfree download tally 9.0 softwarehow to find ledger folio number on chequehow to calculate education cess on service taxproforma of bank reconciliation statementtally erp 9 tutorial downloadwhat is voucher in tallychecking account ledgerjournal entry for creating provision for doubtful debtsbank overdraft accounting definitiondebit credit meaning accountingcash book ledger formatjournal entry for paying salariesfree download tally erp 9 setup filecheque withdrawalpost dated cheque exampleaccrued income examplesadvances from customers journal entryincome tax slab for ay 2014-15meaning of debitorjournal entry prepaid expensekannada language tutorialtds when to be deductedsimple proforma invoiceaxis bank credit card on fixed depositledger proformafictitious assetjurnal account payablewhen is the trial balance preparedtds calculation on service invoicesinvoice proforma4 types of adjusting entriessimple bank reconciliation templatetds feesuspense account balance sheetaccounting voucher systemjournals and ledgersfictitious assetshow do you prepare a trial balancejournal entries for bad debtskannada language learning in tamilaccounting groups and ledgersconsumables accountingmeaning of ledger foliojournal entries for tdsentry for salary payablebuy tally softwaretally classes in bangaloreterminologies of accountinginvoice voucherkinds of debentureerp bomtds paid challan printhow do post dated checks worktally defhow to remove auto backup folderincome tax slab 2014cash discount journal entrylpo meaning purchase ordersuspense account group is defined underdamaged inventory journal entrylatest tally softwaretally symbolocc accountinghow to find ledger folio number on cheque