Monday, June 6, 2011     17:19
 

Frequently Asked Question

1. What is a General Ledger?
The general ledger is the main accounting record of a business which uses double-entry bookkeeping. It will typically include accounts for such items as current assets, fixed assets, liabilities, revenue and expense items, gains and losses. Each General Ledger is divided into debits and credits sections. The left hand side lists debit transactions and the right hand side lists credit transactions.

2. What is Accounts Payable Subsidiary Ledger?
An accounting ledger that shows the transaction history and amounts payable separately for each supplier from whom the business receives credit for purchases. The balance in the customer accounts is periodically reconciled with the accounts payable (AP) balance in the general ledger to make sure accurateness. The AP subsidiary ledger is also commonly referred to as the AP subledger or subaccount.

3. What is a subsidiary ledger?

A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a particular general ledger account. The general ledger account that summarizes a subsidiary ledger's account balances is called a control account or master account.

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