7/11/2023 0 Comments Ledger live not showing balanceTo ensure accuracy, a company's accountant also regularly reconciles the balance in each client account with the accounts receivable balance in the general ledger. Accountants often reconcile this balance with the general ledger.Īccounts receivable ledger: This subledger records the payment history and credit sales transactions of each client. Here are the various subledger categories accountants typically use:Īccounts payable ledger: This type of ledger records payments to creditors and credit purchases. Related: What Is a General Ledger? Definition, Functions and Key Elements Types of subsidiary ledgers Companies also refer to separate business subledgers as controlling accounts. Accountants often create subledgers for each customer of a company, and these separate databases can trace the transactions of a specific company and the amount of payment it expects from each client. One of the main uses of a subledger is to record the accounts receivable transactions of specific clients. Companies reflect the sum of their subledger in their general ledger. It helps organize the general ledger for a large corporation that maintains multiple streams of revenue and debts. A subledger contains details that contribute to the total financial transactions within a company. Short for a subsidiary ledger, a subledger is a subset of the general ledger that contains all financial accounting information for a company. In this article, we discuss what a subledger is, list its types and what it includes, explore its benefits and provide examples. If you're responsible for viewing, recording or reporting a company's financial information, it's important to understand how to use a subledger to organize the primary accounts of a business. When an accountant processes a significant number of transactions for a client or business function, they often create subledgers to manage the data. Managing and recording a large company's financial information may require more than a general ledger.
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