Subsidiary ledger
Subsidiary is a kind of ledger maintained by
the large scale organization.
1. A kind of Ledger:
Subsidiary
ledger is a type of ledger, which normally keeps the individual accounts of
creditor and debtors.
2. Large organization:
Subsidiary
ledgers are maintained by the large scale organization mainly to manage the
information flow. This is not possible with a single ledger (General ledger).
3. Memorandum Record
Subsidiary
ledger is memorandum record and does not play a role in the book keeping. However,
it is an important record for tracking the individuals’ information /balances.
4. Both ledgers:
Organization
maintain subsidiary ledger in addition to general ledger.
5. Updated
Subsidiary
ledger is updated immediately with a related transaction.
6. Examples of Subsidiary
ledger
a)
Creditor subsidiary ledger
b)
Debtor subsidiary ledger.
7. Recording in Subsidiary
Ledgers
Subsidiary ledger is regularly updated from
the special journals and cash book. This has been explained below
Example
Credit Sales made to following during week
Aslam = 20,000
Ali = 30,000
Fahad = 40,000
Recording
in Sales Day Book
Sales Day Books
|
Aslam
|
20,000
|
|
Ali
|
30,000
|
|
Fahad
|
40,000
|
|
|
90,000
|
Posting
in General Ledger
Sales Account
|
Date
|
Particulars
|
Dr.
|
Date
|
Particulars
|
Cr.
|
|
|
|
|
Total
Debtor
|
|
90,000
|
|
|
|
|
|
|
|
Total Debtor Account
|
Date
|
Particulars
|
Dr.
|
Date
|
Particulars
|
Cr.
|
|
|
Total
Sales
|
90,000
|
|
|
|
|
|
|
|
|
|
|
Memorandum
Record (subsidiary Ledger for Debtors)
Aslam A/C
|
Date
|
Particulars
|
Dr.
|
Date
|
Particulars
|
Cr.
|
|
|
Sales
|
20,000
|
|
Balance
|
20,000
|
|
|
|
|
|
|
|
Ali
Account
|
Date
|
Particulars
|
Dr.
|
Date
|
Particulars
|
Cr.
|
|
|
Sales
|
30,000
|
|
Balance
|
30,000
|
|
|
|
|
|
|
|
Fahad
Account
|
Date
|
Particulars
|
Dr.
|
Date
|
Particulars
|
Cr.
|
|
|
Sales
|
40,000
|
|
Balance
|
40,000
|
|
|
|
|
|
|
|
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