Accounting - Subsidiary ledgers
The subsidiary ledger is a supplement to the general ledger, continuing
specific information about the individual debtors, creditors, stock and
The advantages of preparing a subsidiary ledger are:
* it removes bulky detail from the general ledger. This streamlines
posting procedures to the general ledger
* it enables a check to occur between the balance of the control account
and the total balances of the individual accounts - usually shown in a
* it allows the separation of duties between the person completing the
general ledger and the person dealing with the subsidiary, thus improving
* it shows the individual transactions involving that particular item.
For instance, in the case of debtors, it includes the amount of stock
bought on credit, cash received from the debtor and the amount outstanding.
The date of which all these individual transactions occurred is also shown
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