Controlling Accounts and Subsidiary Ledgers Assignment Help

Controlling Accounts and Subsidiary Ledgers Assignment Help Controlling Accounts and Subsidiary Ledgers

Subsidiary ledger is a separate ledger in which, a large number of individual accounts are grouped together with the same characteristic. Subsidiary ledgers are represented in the general ledger, which contents all the balance sheet and income statements accounts. Subsidiary accounts are posted daily in order to prevent customers from exceeding their credit limits. A subsidiary ledger includes two types of ledges such as accounts payable ledger and accounts receivable ledger (Gilbertson & Lehman, 2011). On the other hand, controlling account is a summarized account that contains all the general ledgers and subsidiary ledgers. The controlling accounts also called as control account in a general ledger that maintains the total of the individual account balances in a subsidiary ledger (Mills, 2000).

Relationship between Controlling Account and Subsidiary Ledgers There is a strong relationship between the controlling account and subsidiary ledgers. It is identified that the subsidiary ledger is a secondary ledger that support the controlling account in the general ledger. It is because the sum of the balance of the accounts in a subsidiary ledger must equal to the balance of the related controlling accounts. With the help of this relationship, it is easier for the accountant to create deduction and isolation of mistakes in the account balances. Most of the organization uses different subsidiary ledgers for the different accounts in addition to the account payable and account receivable (Warren, Reeve & Duchac, 2011). It helps the businesses to keep track record of each item from purchase of product, its costs, location and other data. It is also identified that the same details are posted to both the control account and the subsidiary ledger from the general. It helps in making effective relationship between these two (Gilbertson & Lehman, 2011). References Gilbertson, C. B. & Lehman, M. W. (2011). Century 21 Accounting: General Journal. USA: Cengage Learning. Mills, D. (2000). Foundations of Accounting. USA: UNSW Press. Warren, C. S., Reeve, J. M. & Duchac, J. (2011). Financial Accounting. USA: Cengage Learning. Please e-mail us your assignment and get best and original business accounting assignment help from our assignment experts