Difference between General Ledger and Subsidiary Ledger

Ledgers are of two types- general ledger and subsidiary ledger. Both are important for accounting process. There are some difference between general ledger and subsidiary ledger which are described below:

Difference between General Ledger and Subsidiary Ledger

Point General Ledger Subsidiary Ledger
Nature It is a group of accounts  with different  characteristic It is a group of accounts with the common characteristic.
Use It is compulsory in the recording process. It is optional in the recording process.
Trial Balance Trial balance is prepared by using a general ledger. Trial balance is not prepared by using a general ledger.
Control It controls subsidiary  accounts It is a part of a general ledger.
Chart of Accounts It has a  chart of  account It has no chart of accounts.
Difference between General Ledger and Subsidiary Ledger

Difference between General Ledger and Subsidiary Ledger

Accounting is an easy method for recording and coverage a company’s money transaction data. Businesses typically which use many complete exchanges and also made deals they need different ledgers and journals to take care of records of monetary transactions. Instead of inserting all business and money transactions into one ledger, an account informer typically use many subsidiary ledgers for this data for future. Business founders and homeowners will review specific data associated with sharing deal and analysis on some of their company’s money data.

Concept and type of ledgers

Subsidiary ledgers will be easily purchasable and playable with updates in the market. The acquisition ledger contains data concerning the exact information. In short define; it collects unique information of the account holder. The subsidiary ledger contains data of customers for agency owner the corporate cash. The costly ledgers contain management accounting data concerning the assembly of information and services. The payroll of subsidiary ledger includes all the data concerning and value of workers or investment.

Subsidiary ledgers contain various data concerning business transactions and money accounts. This information is maintained in different ways from the company’s main book of account. Faster growing business organizations typically use subsidiary ledgers as a result of they need exact numbers of monetary transactions. It should help to understand the market research of self-company and the final accounting includes data that doesn’t meet the policies of subsidiary ledgers. However, an account holder chooses to use subsidiary ledgers once recording money transactions to limit the quantity of serve them with various data in the main book of account.

It should be comfortable to small business owners if they use automatic account software to maintaining their accounts. But if the company made countless daily deals then subsidiary ledger should be comfortable to you. Because it’s would need to have every single information inputted with hands.

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