Subsidiary

A subsidiary ledger is a group of individual accounts that are summarized in a controlling General Ledger account. There are two major types of subsidiaries: Accounts Payable and Accounts Receivable.

The General Ledger controls the account while the subsidiary tracks the account details. The sum of the subsidiaries equals the balance of the control account.  Like all other General Ledger accounts, the Accounts Receivable and Accounts Payable accounts carry balances that display on reports.

This illustrates the Accounts Receivable account and the manner in which it is connected with individual accounts. The example shows that George Wilson, Mary Jones, and Tom Wise owe money. It also shows that Ellen Martin has overpaid and is due a refund.

G/L Account #

Description

 

G/L Balance

01-01-1020-1200

Accounts Receivable

 

6,000.00

 

George Wilson

1,600.00

 

 

Mary Jones

2,000.00

 

 

Ellen Martin

150.00-

 

 

Tom Wise

2,550.00

 

 

Subsidiary total:

6,000.00