Control Accounts And Subsidary Ledgers

Question 1

Define general ledger

Answer 1

Contains all the ledger accounts for recording transactions occurring within an entity

Question 2

Define SLCA (sales ledger control account)

Answer 2

Contains the total value of all the invoices and credit notes issued to, and cash receipts received from credit customers for a given period.

Basically the receivables account.

Question 3

Define PLCA (purchase ledger control accounts)

Answer 3

Contains the total value of all the invoices and credit notes received from, and cash payments made to credit suppliers in a given period.

Basically the payables account.

Question 4

Do sub ledgers form part of the double entry system?

Answer 4

NO

Question 5

Define subsidiary ledger

Answer 5

Provides details behind the entries in the general ledger.

Subsidiary ledgers are maintained for each individual receivable and payable.