Question

Each transaction is posted to various Ledgers and Journals in the accounting system. Identify the Subsidiary Ledger, Journal, and account in the General Ledger for invoices and payments relating to both creditors and debtors. Debtor Creditor Original transaction Subsidiary Ledger Journal General Ledger Subsidiary Ledger Payment Journal General Ledger

Answer 1

		Debtor	Creditor
Original Transaction	Subsidiary Ledger	Individual Customer Accounts	Individual Vendor Accounts
	Journal	Sales Journal	Purchase Journal
	General Ledger	Accounts Receivable	Accounts Payable
Payment	Subsidiary Ledger	Individual Customer Accounts	Individual Vendor Accounts
	Journal	Cash Receipts Journal	Cash Disbursements Journal
	General Ledger	Accounts Receivable	Accounts Payable

A group of similar accounts which when combined equal the balance in a specific GL (General Ledger account) is a Subsidiary Ledger. For example, an accounts receivable subsidiary ledger (customers' subsidiary ledger) includes a separate account for each customer who makes credit purchases. The combined balance of every account in this subsidiary ledger equals the balance of accounts receivable in the general ledger and similarly for Creditors or accounts payable.