Difference Between General Ledger and Subsidiary Ledger

Ledgers are of two types- general ledger and subsidiary ledger. Both are important for the accounting process. There is 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 a 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.	The 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.

Accounting is an easy method for recording and coverage a company’s money transaction data. Businesses typically use many complete exchanges and also make 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 the future. Business founders and homeowners will review specific data associated with sharing deals 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 owners the corporate cash.

The costly ledgers contain management accounting data concerning the assembly of information and services. The payroll of the subsidiary ledger includes all the data concerning and value of workers or investments.

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 serving them with various data in the main book of account.

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

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