General Ledger-Subledgers
Bookkeeping Ingredients
General Ledger: The General Ledger is the central record-keeping system that contains all the financial transactions of a business. It includes accounts for assets, liabilities, equity, revenue, and expenses. Entries from the Journals are summarized and posted to the General Ledger.
Accounts Receivable Subsidiary Ledger: This ledger tracks the amounts owed to the business by its customers for goods or services provided on credit. It includes individual customer accounts and records transactions such as sales, payments, and adjustments.
Accounts Payable Subsidiary Ledger: This ledger tracks the amounts owed by the business to its suppliers for goods or services received on credit. It includes individual supplier accounts and records transactions such as purchases, payments, and adjustments.
Inventory Subsidiary Ledger: This ledger tracks the quantity and value of the items held by the business for sale. It includes information such as the description of the items, quantity on hand, cost, and selling price. It records transactions such as purchases, sales, and adjustments.
Fixed Assets (Equipment) Subsidiary Ledger: This ledger records and tracks the cost of equipment purchased along with the associated accumulated depreciation. It records transactions such as purchases and depreciation.
Ledgers Made Simple