SUBSIDIARY LEDGER Meaning and
Definition
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A subsidiary ledger refers to a separate accounting record that contains detailed information concerning the individual accounts within a specific general ledger account. It is a supplementary component of the general ledger, organized in a way that facilitates easier and more accurate monitoring and analysis of accounts.
The purpose of a subsidiary ledger is to provide a detailed breakdown of transactions related to a particular general ledger account. For example, if a company's general ledger includes an account named "Accounts Receivable," the subsidiary ledger for this account would provide specific information about each individual customer's outstanding balance, invoices, and payments.
Through the use of subsidiary ledgers, businesses can effectively manage and track detailed information on specific accounts without adding clutter and complexity to the general ledger. This segregation allows for efficient monitoring and analysis of individual transactions, ensuring accurate financial reporting and facilitating the identification of errors or discrepancies.
Subsidiary ledgers are commonly used in various accounting tasks such as accounts receivable, accounts payable, inventory, payroll, and fixed assets. They provide a more comprehensive and detailed view of specific accounts, streamlining the overall accounting process and improving accuracy.
Overall, a subsidiary ledger acts as a supporting tool to the general ledger, helping companies maintain precise records, track transactions, and ensure an organized and efficient accounting system.
Common Misspellings for SUBSIDIARY LEDGER
- aubsidiary ledger
- zubsidiary ledger
- xubsidiary ledger
- dubsidiary ledger
- eubsidiary ledger
- wubsidiary ledger
- sybsidiary ledger
- shbsidiary ledger
- sjbsidiary ledger
- sibsidiary ledger
- s8bsidiary ledger
- s7bsidiary ledger
- suvsidiary ledger
- sunsidiary ledger
- suhsidiary ledger
- sugsidiary ledger
- subaidiary ledger
- subzidiary ledger
- subxidiary ledger
Etymology of SUBSIDIARY LEDGER
The word "subsidiary" comes from the Latin word "subsidiarius", which means "assisting" or "supporting". It is derived from the prefix "sub-" meaning "under" and the verb "sidus" meaning "help" or "aid".
The term "ledger" has its roots in the Old English word "léger" or "leger", which means "a place to lie down or sleep". It was later used to refer to a flat surface or a book where financial records were laid out or recorded.
Therefore, the etymology of the word "subsidiary ledger" suggests that it is a supporting or assisting book of financial records that provides supplementary information to the main or general ledger.
Similar spelling word for SUBSIDIARY LEDGER
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