A Report On The Company Essay

754 Words Jun 16th, 2015 4 Pages
To go back in time, Accounting arises from a gentleman by the name of Luca Pacioli. Pacioli took several time out of his day to prepare what they call today ledgers and journals. These where made in those days to make business lives easier. He created a journal entry that includes Debit and credit purchases which we are still familiar with today. At that time he also created a trial balance. Subsidiary ledgers are very important in the accounting world and in the overall language. Subsidiary ledgers provides detail information on financials things such as purchases or sales. It records specific transactions that go down in a business. All of this information then goes on to a bigger ledger which is called the general ledger.
The difference between The General ledger and the subsidiary ledger is that the General ledger contains all of the high accounts in a company and only records major accounts. The subsidiary ledger is a little bit less information, it is the sub accounts of the general ledger with more details. Sub meaning less important or smaller.
There are several different types of Subsidiary ledgers. Some are Accounts payable ledger, accounts receivable ledger, inventory ledge, fixed assets ledger. And purchases ledger. The accounts payable ledger deals with the amounts owed to the company and the credit balances that they receive through purchase. Accounts payable ledgers goes into depth of how much is owed and where exactly the transaction is coming from.…

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