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).

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 2 years ago

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

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