General ledger: General ledger is a ledger which is used to summarize all the entries of the subsidiary ledger. The general ledger is used to record the correcting, adjusting and closing entries. Subsidiary ledger: This is a ledger in which individual balance of every account is 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. Accounts payable subsidiary ledger: Accounts payable subsidiary ledger records the cash disbursements which were due to the suppliers because of the credit purchases made in the business. The subsidiary ledger records the individual balances of the companies. To determine: The balance of accounts payable in subsidiary ledger and general ledger.

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Chapter 7, Problem 7.2DIE

To determine

General ledger: General ledger is a ledger which is used to summarize all the entries of the subsidiary ledger. The general ledger is used to record the correcting, adjusting and closing entries.

Subsidiary ledger: This is a ledger in which individual balance of every account is 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.

Accounts payable subsidiary ledger: Accounts payable subsidiary ledger records the cash disbursements which were due to the suppliers because of the credit purchases made in the business. The subsidiary ledger records the individual balances of the companies.

To determine: The balance of accounts payable in subsidiary ledger and general ledger.

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