Types of subsidiary ledgers

Subsidiary ledgers – whether in a manual or automated accounting system – are important because they help maintain records of similar types in a central location and not clutter the general ledger.

A subsidiary ledger is a group of accounts/records of similar types (e.g., accounts payable).

Subsidiary ledger totals is what’s typically recorded in the general ledger in control accounts.

Three common examples of subsidiary ledgers are:

Accounts Receivable Subsidiary Ledger

Accounts receivable subsidiary ledger is a record of all transaction data of individual customers. A control account for this type of subsidiary ledgers is Trade Accounts Receivable.

Accounts Payable Subsidiary Ledger

Accounts payable subsidiary ledger is a record of all transaction data of individual creditors. A control account for this type of subsidiary ledgers is Trade Accounts Payable.

Fixed Asset Subsidiary Ledger

A fixed asset subsidiary journal is a record of all transaction data for individual fixed assets. This subsidiary ledger may have several control accounts (e.g., Fixed Assets – Buildings).