What is the process for posting to a subsidiary ledger and its controlling account? (number of...

What is the process for posting to a subsidiary ledger and its controlling account? (number of words required must not be less than 100 words).

Solutions

Expert Solution

A control account is a GL account containing only summary amounts. The details for each control account will be found in a related subsidiary ledger . The control account keeps the general ledger free of details, but still has the correct balance for preparing the company's financial statements.

Control account is the general ledger account entitled Accounts Receivable. When it is used as a control account, it will contain only summary amounts, such as total credit sales for a day, total collections from customers for a day, total returns and allowances for a day, and the total amount owed by all customers. Hence, if you want to find the amount that a specific customer still owes for its purchases on credit, it will not be shown in the control account. To find the amount that a specific customer owes, its recent payments, and its recent purchases on credit, you will quickly get that information from the Accounts Receivable Subsidiary Ledger.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Discuss the relationship between the balance in the accounts payable general ledger control account and what is found in the accounts payable subsidiary ledger.

a) Approval of bad debt write-offs and the reconciliation of accounts receivable subsidiary ledger and the general ledger control account.

Explain why each of the following combinations of tasks should or should not be separated to achieve adequate internal control: a) Approval of bad debt write-offs and the reconciliation of accounts receivable subsidiary ledger and the general ledger control account. b) Distribution of payroll cheques to employees and approval of employee time cards. c) Posting of amounts from both the cash receipts and the cash disbursements journals to the general ledger. d) Writing cheques to suppliers and posting to...

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

What is parent company, subsidiary, non controlling interest in consolidated?

What does the term “non-controlling” interest mean? How is the non-controlling interest in a subsidiary company...

What does the term “non-controlling” interest mean? How is the non-controlling interest in a subsidiary company calculated as of the end of a reporting period?

After posting all entries to the ledger, the Accounts Payable T-account will show which of the following? (Select all that apply.)

After posting all entries to the ledger, the Accounts Payable T-account will show which of the following? (Select all that apply.) Payments made on the credit side. Ending balance on the bottom of the credit side. Payments made on the debit side. Beginning balance on the top of the debit side. Purchases on account on the debit side. Beginning balance on the top of the credit side. Purchases on account on the credit side. Ending balance on the bottom of the debit side.

A parent company purchased a 90% controlling interest in its subsidiary several years ago. The aggregate...

A parent company purchased a 90% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $276,000 in excess of the subsidiary’s Stockholders’ Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $180,000 and to an unrecorded patent valued at $96,000. The building asset is being depreciated over a 12-year period and the patent is being amortized over an 8-year period,...

In the presence of non-controlling interests, if dividends are declared by a subsidiary and by a...

In the presence of non-controlling interests, if dividends are declared by a subsidiary and by a parent entity, which dividends payable will be shown in the consolidated balance sheet?

What is ledger account? Explain using illustrations.

Journalizing Purchases Returns and Allowances and Posting to General Ledger and Accounts Payable Ledger Using page...

Journalizing Purchases Returns and Allowances and Posting to General Ledger and Accounts Payable Ledger Using page 3 of a general journal and the following general ledger accounts and accounts payable ledger accounts, journalize and post the following transactions: Mar. 5 Returned merchandise to Tower Industries, $560. 11 Returned merchandise to A & D Arms, $600. 23 Returned merchandise to Mighty Mansion, $290. General Ledger Account No. Account Balance Mar 1, 20-- 202 Accounts Payable $8,440 501.1 Purchases Returns and Allowances...

Subjects