5- Control Accounts & Subsidiary Ledgers

Question 1

What are the 3 parts of recording a transaction?

Answer 1

1. Enter in books of prime entry
2. Transfer amounts into ledger accounts within the general ledger
3. Enter into subsidiary (memorandum) ledgers

Question 2

Receivables ledger control account

Answer 2

The receivables account in the general ledger is now known as the receivables ledger control account. It shows the total amount due to us from our credit customers. It contains all the invoices & credit notes issued to & cash receipts from credit customers for a given period. It may also be referred to as the sales ledger control account.

Question 3

Payables ledger control account

Answer 3

The payables account in the general ledger will now be referred to as the payables ledger control account. It contains the total value of all the invoices & credit notes received from & cash payments made to credit suppliers for a given period.

Question 4

Subsidiary ledger

Answer 4

Provides details behind the entries in the general ledger. Subsidiary ledgers are maintained for individual receivables & payables.

Question 5

Subsidiary receivables ledger

Answer 5

A set of accounts for individual receivables.

Question 6

Subsidiary payables ledger

Answer 6

A set of accounts for individual payables.