What is administer subsidiary accounts?

What is administer subsidiary accounts?

FNSACC302A Administer subsidiary accounts and ledgers This unit describes the performance outcomes, skills and knowledge required to reconcile and monitor financial accounts receivable systems, identify bad and doubtful debts and plan a recovery action and remit payments to sundry creditors.

How subsidiary ledgers are administered?

A subsidiary ledger stores the details for a general ledger control account. Once information has been recorded in a subsidiary ledger, it is periodically summarized and posted to a control account in the general ledger, which in turn is used to construct the financial statements of a company.

What is the purpose of using the subsidiary ledger?

A subledger or subsidiary ledger provides the details that make up the balance of specific general ledger accounts. Because general ledger accounts only provide an ending balance for each particular account, a subsidiary ledger is used to provide the details that result in that general ledger balance.

What are the three types of subsidiary ledger?

Subledger eliminates the chances of fraud and errors, and it can be segregated into three types- fixed asset sub-ledger, accounts receivable sub-ledger, and accounts payable sub-ledger.

What is the difference between general ledger and subsidiary ledger?

A sub-ledger has no chart of accounts. A general ledger has a few accounts in the following categories; assets, liabilities, income, expenses, and equity. They also have a few sub-accounts, such as accounts payable and accounts receivable. Accounts are often created as needed.

What is the purpose of a subsidiary ledger What other control accounts might be supported by subsidiary ledgers?

The subsidiary ledger provides an opportunity to better monitor the individual transactions of a particular controlling general ledger account. Control accounts commonly supported by subsidiary ledgers include the accounts receivable and accounts payable accounts.

Why do businesses need to prepare subsidiary ledgers?

The purpose of keeping subsidiary ledgers is for accuracy and efficiency. They aid us in keeping accurate records. Since the total of the accounts receivable subsidiary ledger must agree with the balance shown in the accounts receivable general ledger account, the system helps us find mistakes.

What is a subsidiary ledger and its advantages?

“A subsidiary ledger is a group of accounts with a common characteristic. The accounts are assembled together to facilitate the accounting process by freeing the general ledger from details concerning individual balances.”

What is subsidiary ledger and its advantages?

What are the two types of subsidiary ledgers?

Two common subsidiary ledgers:

• Accounts receivable subsidiary ledger where data relating to individual buyers are kept.
• Accounts payable subsidiary ledger is due where data relating to individual creditors are kept.

How does subledger accounting work?

Sub Ledger (SL) It is a set of master accounts where accounting transactions are recorded. Sub-ledger. It is extremely difficult to keep track of all transactions in a large organization’s common ledger; therefore, a subledger is the ideal solution for recording entire transactions.

Why do you think general ledger and subsidiary ledgers are important in recording business transactions?

Purpose. The purpose of preparing the general ledger is to compile all account balances and prepare the trial balance. The purpose of preparing subsidiary ledger is to hold detailed and accurate data of financial transactions posted to the journal.