Control accounts and subsidiary ledgers Definitions Flashcards
What is a Sales Ledger?
A subsidiary ledger where the individual customer accounts are maintained. It does not form part of the double entry system.
What is a Sales Ledger control account (SLCA)?
The SLCA contains the total value of all the invoices and credit notes issued to and cash receipts from credit customers for a given period.
What is SLCA also known as?
The ‘Receivables’ account.
What is a Purchase Ledger?
A subsidiary ledger where the individual supplier accounts are maintained. It does not form part of the double entry system.
What is a Purchase Ledger control account (PLCA)?
The PLCA contains the total value of all the invoices and credit notes received from and cash payments made to credit suppliers for a given period.
What is PLCA also known as?
The ‘Payables’ account.
What is a Subsidiary Ledger?
It is a separate account from the general ledger in which it records individual credit customer and supplier transactions. However, it does not form part of the double entry system and does not require corresponding debit and credit entries.
What is a General Ledger?
A general ledger contains all the ledger accounts used for recording transactions occurring within an entity and completing double entry. The general ledger may also be referred to as the ‘nominal’ ledger.
What is one key difference between a subsidiary ledger and a general ledger?
A subsidiary ledger does not form part of the double entry system, whereas a general ledger requires completing double entry.
Why do we need subsidiary ledgers?
Without them, we cannot see how much each individual customer owes us and how much we owe each individual supplier.
