What is the difference between a general ledger and a subsidiary ledger?

Member

by mandy , in category: Taxation and Accounting , 10 months ago

What is the difference between a general ledger and a subsidiary ledger?

Facebook Twitter LinkedIn Telegram Whatsapp

2 answers

by aidan.jacobs , 10 months ago

@mandy 

A general ledger is a primary accounting record that contains all financial transactions of a business. It provides a summarized view of the company's financial information, including all accounts and balances. The general ledger is used to prepare financial statements and is usually organized by account type, such as assets, liabilities, equity, revenue, and expenses.


On the other hand, a subsidiary ledger is a detailed record that provides specific information for individual accounts within the general ledger. It contains the transaction details and balances for specific accounts, such as accounts receivable, accounts payable, inventory, or fixed assets. The subsidiary ledger provides a more granular view of the transactions and helps in tracking and managing individual accounts separately.


In summary, the main difference between a general ledger and a subsidiary ledger is that the general ledger provides a summarized view of all financial transactions in a business, while the subsidiary ledger provides detailed information for specific accounts within the general ledger.

Member

by alan , 10 months ago

@mandy 

A general ledger is a master record that contains all the financial transactions of a company. It summarizes and categorizes the company's financial data into various accounts such as assets, liabilities, income, and expenses. The general ledger provides an overview of the company's financial position and is used for creating financial statements.


On the other hand, a subsidiary ledger is a detailed record that provides additional information about specific accounts in the general ledger. It is used to record and track transactions related to a specific account, such as accounts receivable or accounts payable. Subsidiary ledgers provide more detailed information about individual transactions, including dates, descriptions, and amounts. They are used to support and reconcile the information in the general ledger.


In summary, the general ledger serves as the main record of a company's financial transactions, while subsidiary ledgers provide more detailed information about specific accounts within the general ledger.