Q:

Does the AP ledger require a subsidiary ledger?

A:

Quick Answer

The AP ledger does not specifically require a subsidiary ledger. However, it is recommended for those who want to keep a general ledger organized. This can also help with keeping transactions from getting confused with one another.

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Full Answer

A subsidiary ledger is used to contain detailed information regarding transactions that are listed in a summary on a general ledger. This is often used for a high volume account that has multiple transactions and information that is not necessarily needed by a general accountant. The accountant can access the basic information needed for his role, while a financial analyst could use the subsidiary ledger to explore the transactions in greater detail.

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Related Questions

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    What is typically on a general ledger?

    A:

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    What is a manual accounting system?

    A:

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    Sources for general ledger templates include site such as TidyForms.com, OfficeTemplatesOnline.com, ExcelTemplates.net and Double-Entry-Bookkeeping.com, as of 2015. Each site includes a description of the purpose for the template, links to other bookkeeping resources and a download link to access the document and modify it with the appropriate program.

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    What is a post-closing trial balance?

    A:

    A post-closing trial balance is a listing of general ledger account balances after the closing entries for an accounting period have been entered, according to Accounting Coach. This listing includes only balance sheet accounts. Income accounts are not listed because they are closed for that accounting period.

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