What is the posting to subsidiary ledger?
A subsidiary ledger stores the details for a general ledger control account. Once information has been recorded in a subsidiary ledger, it is periodically summarized and posted to a control account in the general ledger, which in turn is used to construct the financial statements of a company.
What are the accounting procedures for posting to a ledger?
The five steps of posting from the journal to ledger include typing the account name and number, specifying the details of the journal entry, entering the debits and credits for the transaction, calculating the running debit and credit balances, and correcting any errors.
What is general ledger and posting?
Posting is the process of recording amounts as credits (right side), and amounts as debits (left side), in the pages of the general ledger. The general ledger should include the date, description and balance or total amount for each account.
What is general and subsidiary ledger?
General ledger is the master ledger account which consolidates all subsidiary ledger accounts and which is posted to the trial balance. Subsidiary ledger is a categorization of general ledger to which journal entries are first posted.
What is the relationship between general and subsidiary ledgers?
The key difference between General Ledger and Sub Ledger is that General ledger prepared by the company is the set of the different master accounts in which the transactions of the business are recorded from the related subsidiary ledgers, whereas, Sub ledger act as an intermediary account set that is linked with the …
When using a subsidiary ledger the accounts receivable account in the general ledger is called the?
The general ledger account that summarizes a subsidiary ledger’s account balances is called a control account or master account. For example, an accounts receivable subsidiary ledger (customers’ subsidiary ledger) includes a separate account for each customer who makes credit purchases.
How do you post on general ledger?
How to post journal entries to the general ledger
- Create journal entries.
- Make sure debits and credits are equal in your journal entries.
- Move each journal entry to its individual account in the ledger (e.g., Checking account)
- Use the same debits and credits and do not change any information.
How do you write a general ledger in accounting?
When creating a general ledger, divide each account (e.g., asset account) into two columns. The left column should contain your debits while the right side contains your credits. Put your assets and expenses on the left side of the ledger. Your liabilities, equity, and revenue go on the right side.
How is general ledger different from subsidiary ledger?
General ledger and sub ledger are such accounts that record business transactions. The key difference between general ledger and sub ledger is that while general ledger is the set of master accounts where transactions are recorded, sub ledger is an intermediary set of accounts that are linked to the general ledger.
Why do you post a purchase on account to two different ledgers?
Using separate ledgers means that each transaction can be recorded in two or more different places. If you use a manual accounting system, the numbers can be transposed during the recording process. You can check your work by adding up the amounts in the debit column and the credit column.
How are subsidiary ledgers used in the general ledger?
Once information has been recorded in a subsidiary ledger, it is periodically summarized and posted to a control account in the general ledger, which in turn is used to construct the financial statements of a company. Most accounts in the general ledger are not control accounts; instead, individual transactions are recorded directly into them.
What happens when you post to the general ledger?
When you post, you will not change your journal entries . If you debit an account in a journal entry, you will debit the same account in posting. If you credit an account in a journal entry, you will credit the same account in posting. After transactions are journalized, they can be posted either to a T-account or a general ledger.
Which is account is made up of subsidiary accounts?
For example, Accounts Receivable may be made up of subsidiary accounts such as Accounts Receivable – Customer A, Accounts Receivable – Customer B, Accounts Receivable – Customer C, etc. Okay – let’s go back to the general ledger.
Which is an example of an accounting ledger?
An accounting ledger refers to a book that consists of all accounts used by the company, the debits and credits under each account, and the resulting balances. This tutorial will provide examples of ledger accounts and will teach you how the posting process works. Books of Final Entry