Principles of Financial Accounting · free preview
Preparing a Subsidiary Ledger
A subsidiary ledger tracks detail for one control account, customer receivables or vendor payables, so the general ledger can hold a single summary balance while statements and collections still work line by line.
1. The problem of many small balances
The problem of many small balances
2. How the subsidiary ledger updates
How the subsidiary ledger updates
3. Why the two-level design pays
Why the two-level design pays
4. Controls around subsidiary ledgers
Controls around subsidiary ledgers
5. Purpose of the control account
Why does the general ledger use a single accounts receivable control account instead of hundreds of customer accounts?
6. Reconciliation meaning
The receivables control account shows 45,000 dollars and the subsidiary customers total 44,200 dollars. What must happen next?
7. Which journal feeds the receivables subsidiary
Which special journal posts line by line to the accounts receivable subsidiary ledger as transactions occur?
8. Statement preparation source
Where does the billing system pull data when printing a customer's monthly statement?
9. Two-level name
Complete the term. The single general ledger account whose balance must equal the sum of the subsidiary ledger detail is called the ____ account.
10. Ledger for vendors
Purchases and payments to suppliers are detailed in which subsidiary ledger? Two words.
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