Chapter J, Problem 2Q

(a)

To determine

Subsidiary Ledgers

Subsidiary ledgers refer to group of individual accounts with common characteristics and serves as an extension of the general ledger. Subsidiary ledgers relieve the general ledger control account, from the overburden of incorporating details of individual accounts. Example of subsidiary ledgers are the individual customers accounts comprising of the accounts receivable account of a business and accounts payable account. Subsidiary ledgers are usually maintained in alphabetical order.

When do companies normally post to (1) the subsidiary accounts (2) the general ledger control account.

(b)

To determine

To Describe: The relationship between a control account and subsidiary ledger.