Unformatted text preview: individual account is maintained in subsidiary ledger. It helps in knows what is to be received from a customer and what is to be paid to a supplier. The total of all individuals account are kept in control account. If one wants to see the total amount receivable from all customers and payable to all suppliers, it can be found out in control account. One can use subsidiary ledger account with control account of general ledger. All sales on credit and all purchases on credit are recorded in control account of account receivable and account payable and also to individual account in subsidiary ledger. It helps in reconciling the figure of both ledgers. It is also a type of good internal control, if subsidiary ledger is maintained by some other employee than who is maintaining general ledger....
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This note was uploaded on 06/13/2011 for the course XACC 280 taught by Professor Haskell during the Summer '11 term at University of Phoenix.
- Summer '11