Question: Which Account Is Least Likely To Have A Subsidiary Ledger?

What is difference between general ledger and subsidiary ledger?

A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account.

The general ledger account that summarizes a subsidiary ledger’s account balances is called a control account or master account..

What is the purpose of a subsidiary ledger?

An accounts receivable subsidiary ledger is an accounting ledger that shows the transaction and payment history of each customer to whom the business extends credit. The balance in each customer account is periodically reconciled with the accounts receivable balance in the general ledger to ensure accuracy.

What type of accounts are kept in the accounts payable ledger?

Definition: The accounts payable ledger, also called the creditors ledger, is a subsidiary ledger that lists all of the vendors and suppliers that a company owes along with their account balances and details. In other words, the A/P ledger is a summary of all the current and outstanding accounts payable.

Which accounts most likely use a subsidiary ledger?

Examples of subsidiary ledgers are:Accounts payable ledger.Accounts receivable ledger.Fixed assets ledger.Inventory ledger.Purchases ledger.

Which document is not a type of source document?

CardsTerm Which of the following is a business resource?Definition Raw Material, Labor, InformationTerm Which of the following is an archive file?Definition a file of accounts receivable that have been written offTerm Which document is not a type of source document?Definition a paycheck230 more rows•Sep 12, 2013

What is an account in a general ledger that summarizes all accounts in a subsidiary ledger?

An account in a general ledger that summarizes all accounts in a subsidiary ledger is called a controlling account. The balance of a controlling account equals the total of a related subsidiary ledger.

When a debit is posted to the accounts payable ledger the?

The amounts on each line of a purchases journal are posted to vendor accounts in the accounts payable ledger. The balance of the controlling account Accounts Payable equals the total of all vendor account balances in the accounts payable subsidiary ledger. payable ledger is titled Debit Balance.

What is the relationship between a controlling account and a subsidiary ledger?

What is the relationship between a controlling account and a subsidiary ledger? A controlling account summarizes all accounts in a subsidiary ledger. The balance of a controlling account equals the total of all account balances in its related subsidiary ledger.

Is accounts receivable an asset?

Accounts receivable is an asset account on the balance sheet that represents money due to a company in the short-term. Accounts receivables are created when a company lets a buyer purchase their goods or services on credit.

How do you reconcile accounts receivable subsidiary ledger?

The detailed listing of unpaid customer billings that should match the ending balance in the general ledger is usually recorded in a subsidiary sales ledger. To extract this information for reconciliation purposes, print the aged accounts receivable report as of the final day of the reporting period.

What could cause a discrepancy between the accounts receivable subsidiary ledger and the general ledger?

These are the most common causes for discrepancies between the ledgers: Voided or deleted transactions. Transactions where the transaction date and Post date are in different fiscal periods. Journal entries made directly to the sub ledger summary account.

How is the accounts receivable subsidiary ledger proved?

To prove the accounts receivable subsidiary ledger, the total of the schedule of accounts receivable is compared with the balance of the accounts receivable controlling account in the general ledger. … The use of special amount columns eliminates the need to post individual amounts to general ledger accounts.

How many subsidiary ledgers are there?

Two common subsidiary ledgers: Accounts receivable subsidiary ledger where data relating to individual buyers are kept. Accounts payable subsidiary ledger is due where data relating to individual creditors are kept.

What is General Ledger example?

Examples of General Ledger Accounts asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment. liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits.

What are the two types of ledger?

General Ledger – General Ledger is divided into two types – Nominal Ledger and Private Ledger. Nominal ledger gives information on expenses, income, depreciation, insurance, etc. And Private ledger gives private information like salaries, wages, capitals, etc. Private ledger is not accessible to everyone.

How many types of common subsidiary ledgers are there?

three typesThere are three types of subsidiary ledgers. Fixed asset subsidiary ledger: is a record of every transaction regarding fixed assets (Also see FRS16: Property, Plant, and Equipment). Accounts Payable Subsidiary Ledger: contains transaction data of your creditors.

Is Accounts Receivable a subledger?

The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business.

What is the controlling account for the accounts payable ledger?

The accounts payable control account or purchases ledger control account, is an account maintained in the general ledger used to record summary transactions relating to accounts payable.