What is the difference of general ledger 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 meant by sub ledger?
Short for a subsidiary ledger, a subledger is a subset of the general ledger which contains all financial accounting information for a company. A subledger contains details that contribute to the total financial transactions within a company.
What are the three types of ledgers?
The three types of ledgers are the general, debtors, and creditors. The general ledger accumulates information from journals.
What is a sub ledger in SAP?
The subledger, or subsidiary ledger, is a subset of the general ledger used in accounting. The subledger shows detail for part of the accounting records such as property and equipment, prepaid expenses, etc.
What is a sub ledger example?
Examples of sub-ledger are customer accounts, vendor accounts, bank accounts, and fixed assets. Plant and machinery, land and buildings, furniture, computers, copyright, and vehicles are all examples.
What is main ledger and subledger?
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.
What is difference between ledger and journal?
The key difference between Journal and Ledger is that Journal is the first step of the accounting cycle where all the accounting transactions are analyzed and recorded as the journal entries, whereas, ledger is the extension of the journal where journal entries are recorded by the company in its general ledger account …
What’s the difference between journal and ledger?
The journal consists of raw accounting entries that record business transactions, in sequential order by date. The general ledger is more formalized and tracks five key accounting items: assets, liabilities, owner’s capital, revenues, and expenses.