Controlling accounts and subsidiary ledgers
Not what you're looking for?
What are the controlling accounts and subsidiary ledgers? What is the relationship between them?
Purchase this Solution
Solution Summary
The expert examines controlling accounts and subsidiary ledgers.
Solution Preview
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 ...
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.