Concept explainers
(a)
(1)
Subsidiary ledger: Subsidiary ledger is a group of accounts which are similar in nature where individual balances are recorded. This is an expansion of the general ledger. The subsidiary ledger records the individual balances and hence there is no need to record the individual balances in the general ledger.
To Explain: Posting in subsidiary accounts and general ledger control accounts.
2.
Control accounts: The account which represents a summary of the subsidiary ledger account is called as the control account. It relates the general ledger and the subsidiary ledger.
To Explain: Posting in subsidiary accounts and general ledger control accounts.
(b)
To Explain: The relationship between control account and subsidiary ledger.
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Chapter 7 Solutions
DF: ACCOUNTING PRINC 14E WPNGEC 1 SEM
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