Here's a breakdown:
* General Ledger: This is the main accounting record that holds all the summary balances for every account in the business. Think of it as the top-level overview.
* Subsidiary Ledger: This ledger contains detailed information about individual items that fall under a specific general ledger account. It provides a more granular view of transactions.
Example:
* General Ledger Account: Accounts Receivable
* Subsidiary Ledger: This ledger would hold detailed information about each individual customer's balance owed, such as:
* Customer Name
* Invoice Number
* Invoice Date
* Amount Owed
Key Points:
* Subsidiary ledgers simplify the general ledger by providing a summary in the main account.
* They help track specific details for individual items within a category.
* Common examples include:
* Accounts Receivable Subsidiary Ledger
* Accounts Payable Subsidiary Ledger
* Inventory Subsidiary Ledger
Let me know if you'd like more details on subsidiary ledgers or any other accounting concepts!