What is a fixed asset subsidiary ledger?

What is a fixed asset subsidiary ledger?

Fixed Assets Subsidiary Ledger: Fixed Assets Subsidiary Ledger is used to manage purchase, sale, allocation, and retirement of fixed assets. This is also known as “Equipment Subsidiary Ledger” or just the “Asset Register”.

What is an example of a subsidiary ledger?

Examples of subsidiary ledgers are: Accounts payable ledger. Accounts receivable ledger. Inventory ledger.

What should be included in a subsidiary ledger?

The accounts receivable subsidiary ledger shows all the sales made on credit by a business. It provides details on these sales by showing invoice dates and numbers, credit memorandums, payments made against the credit sales, discounts, and returns and allowances.

How do you record a subsidiary ledger?

Record all transactions using the sales journal, purchases journal, cash receipts journal, cash disbursements journal, and the general journal and post to the accounts receivable and accounts payable subsidiary ledgers. Then prepare a schedule of accounts receivable and a schedule of accounts payable.

What is the difference between subsidiary ledger and general ledger?

General ledger and sub ledger are such accounts that record business transactions. The key difference between general ledger and sub ledger is that while general ledger is the set of master accounts where transactions are recorded, sub ledger is an intermediary set of accounts that are linked to the general ledger.

What are the two types of subsidiary ledger?

Types of Subsidiary Ledger Account

• Accounts Payable Subsidiary Ledger – This type of ledger records all the transaction data concerning individual suppliers, vendors, and creditors of an organization.
• Accounts Receivable Subsidiary Ledger – Accounts receivable.
• Fixed Asset Subsidiary Ledger – Fixed asset.

What is subsidiary ledger and general ledger?

A sub-ledger explains transactions and feeds into the general 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.

Which of the following accounts would most likely use a subsidiary ledger?

Which of the following accounts would most likely use a subsidiary ledger? cash receipts and cash disbursements.

What is the difference between a general ledger and subsidiary ledger?

General ledger is the master ledger account which consolidates all subsidiary ledger accounts and which is posted to the trial balance. Subsidiary ledger is a categorization of general ledger to which journal entries are first posted.

How many subsidiary ledgers are there?

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.

What is the purpose of a 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 is the difference between a specialized journal and a subsidiary ledger?

Accounts Payable Subsidiary Ledger: contains transaction data of your creditors. Special journals are suitable for recording transactions that occur frequently.

Which of the following is an example of subsidiary ledger?

Examples of subsidiary ledgers are: Accounts payable ledger. Accounts receivable ledger. Fixed assets ledger. Inventory ledger.

What is subsidiary ledger in SAP?

A subsidiary ledger can be set up for virtually any general ledger account. However, they are usually only created for areas in which there are high transaction volumes, which limits their use to a few areas. Examples of subsidiary ledgers are: Accounts payable ledger.

Do I need a subsidiary ledger in a small company?

Thus, there is no need for a subsidiary ledger in a small company. A subsidiary ledger can be set up for virtually any general ledger account. However, they are usually only created for areas in which there are high transaction volumes, which limits their use to a few areas. Examples of subsidiary ledgers are:

What is a subledger in accounting?

What is Subledger in Accounting? Subledger is a subset of various general ledgers used for accounting and may contain all accounts receivable, accounts payable, prepaid expenses, or fixed assets related to financial transactions.