What is control account and subsidiary account?
A subsidiary account is used to track information at a very detailed level for certain types of transactions, such as accounts receivable and accounts payable. A control account is a summary-level account in the general ledger that contains aggregated totals.
What mean subsidiary ledgers and controlling accounts?
A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. The general ledger account that summarizes a subsidiary ledger’s account balances is called a control account or master account.
Which of the following accounts is a control account with a subsidiary ledger?
accounts receivable
Control accounts commonly supported by subsidiary ledgers include the accounts receivable and accounts payable accounts.
What is control account ledger?
Definition: A control account, often called a controlling account, is a general ledger account that summarizes and combines all of the subsidiary accounts for a specific type. In other words, it’s a summary account that equals the sum of the subsidiary account and is used to simplify and organize the general ledger.
What is the difference between ledger account and control account?
It has a similar job to the sales ledger control account in that it looks at the amount owed to the business by credit customers but the big difference is that whilst the control account gives the total of trade receivables as a single figure, the sales ledger lists the individual amounts owed by each customer.
What are control accounts in SAP?
A control account holds the total A/R or A/P balance for all linked business partners. Control accounts are included in the balance sheet report, so their balance reflects your total balances for customers and vendors. Manual journal entries cannot be posted to a control account.
What is the difference between ledger and control account?
What is subsidiary account?
A subsidiary account is an account that is kept within a subsidiary ledger, which in turn summarizes into a control account in the general ledger. A subsidiary account is used to track information at a very detailed level for certain types of transactions, such as accounts receivable and accounts payable.
What are subsidiary ledgers and control accounts?
Subsidiary Ledgers and Control Accounts. A subsidiary ledger is a detailed list to support a control account. A control account appears on the balance sheet in summary or total, and are accounts like accounts receivable, accounts payable, and inventory. This video explains the theory (the video refers to a Debitor account which is Accounts
What is the difference between general ledger and subsidiary ledger?
The general ledger contains minimal data, while subsidiary ledger contains extensive data. It is just a part of the general ledger while the latter controls the former.
What is the difference between subsidiary ledgers and reconciliation accounts?
Besides, what are subsidiary ledgers and reconciliation accounts How are they related? Reconciliation accounts are general ledger accounts that consolidate data from a group of related sub- ledger accounts, such as customers ( accounts receivable) and vendors ( accounts payable). Data cannot be posted directly into a reconciliation account.
What is subsidiary ledger in SAP?
A subsidiary ledger can be set up for virtually any general ledger account. However, they are usually only created for areas in which there are high transaction volumes, which limits their use to a few areas. Examples of subsidiary ledgers are: Accounts payable ledger.