Definition

Noun: A subsidiary ledger is a detailed accounting record that contains the individual transaction details for a specific general ledger account. It supports and provides the breakdown for the total balance shown in the general ledger.

Usage

A subsidiary ledger is used to organize detailed information, keeping the general ledger from becoming cluttered with excessive detail. The total of all accounts in a subsidiary ledger must equal the balance in its corresponding controlling account in the general ledger.

Examples

• Noun:
  • The accounts receivable subsidiary ledger lists all the individual customer balances.
  • To verify the total inventory value, the accountant reviewed the subsidiary ledger.
  • The general ledger shows a single accounts payable balance, while the subsidiary ledger contains a separate record for each vendor.

Advanced Usage

• "to maintain a subsidiary ledger": To keep and update a detailed record for a specific set of accounts.
  • The company maintains a separate fixed asset subsidiary ledger for all its equipment and vehicles.

Variants and Related Words

• Controlling Account (noun): The general ledger account that summarizes the total of the accounts in a subsidiary ledger.

  • The "Accounts Receivable" account in the general ledger is a controlling account for the customers' subsidiary ledger.

• Subledger (noun): A common abbreviated term for "subsidiary ledger".

  • All transactions are first posted to the appropriate subledger.

Synonyms

• Detail ledger: A ledger containing detailed transaction records.
• Supporting ledger: A ledger that provides the detailed support for a general ledger total.

Related Phrases

• To reconcile to the general ledger: The process of ensuring the total of a subsidiary ledger matches its controlling account balance.
  • At month-end, the bookkeeper must reconcile the subsidiary ledger to the general ledger.

Noun

1. details of an account supporting the amount stated in the general ledger