Subsidiary Ledger

What is a Subsidiary Ledger?

A Subsidiary Ledger is a detailed accounting ledger that records individual account details and provides support to a control account in the general ledger. It is used to track specific transactions and balances related to accounts such as accounts receivable or accounts payable.

Short Description: A detailed ledger that provides individual account details, complementing the control account in the general ledger.

• Accounts Receivable Subsidiary Ledger: Contains all detailed information about amounts owed to a company by its customers.
• Accounts Payable Subsidiary Ledger: Includes comprehensive records of amounts owed by a company to its vendors.
• Inventory Subsidiary Ledger: Tracks detailed inventory transactions and balances, enhancing inventory management.

The Subsidiary Ledger ensures detailed tracking of transactions and helps accountants maintain organized records by linking specific transaction details with their corresponding general ledger control accounts.