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    Controlling accounts and subsidiary ledgers

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    What are the controlling accounts and subsidiary ledgers? What is the relationship between them?

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    https://brainmass.com/business/accounting/controlling-accounts-subsidiary-ledgers-463096

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    1 Subsidiary Ledger:
    A business may have accounts of thousands of customers (account Receivable) and Suppliers (Accounts payable).If only one account is maintained for these several customers or creditors it will be difficult to trace the balance of each individual customer or creditor on any specific date.

    Subsidiary ledger is maintained to keep a track of individual accounts. Subsidiary ledger provides details of individual balances which are not available in general ledger. It is the expansion of General ledger.

    2 Control Accounts:

    In general ledger two control accounts are maintained as follows

    1 Account Receivable Account

    2 Account payable account.

    Postings for individual transactions are made in relevant individual account of customer or creditor. In addition to this Postings for total amount of sales or purchase are made in Account Receivable or Account payable control accounts. In other words the General ledger summarizes the subsidiary ledger data Each general ledger control account ...

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    The expert examines controlling accounts and subsidiary ledgers.

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