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Unformatted text preview: Cash payments journals record cash disbursements, the advantage is the ability to see whether the cash was paid out on materials, store or office supplies, or whether it a credit account. A subsidiary ledger is a group of accounts with characteristics in common, such as a customer or creditor; it is used to keep track of the individual balances. Control account is a summary of the more detailed subsidiary ledger and its purpose is to show the relation between the general ledger and subsidiary ledger. The two ledger accounts that may act as control accounts are accounts receivable and accounts payable. Some advantages of subsidiary ledgers are; 1. Show single account transactions affecting only one customer or creditor, 2. Free general ledger of excessive details, 3. Help locate errors in individual accounts, 4. Make division of labor possible. SUBSIDIARY LEDGERS AND SPECIAL JOURNALS 3 Reference Stormo, D. D. (2008). Subsidiary Ledgers and Special Journals . Na: www.wiley.com....
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This note was uploaded on 09/05/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at University of Phoenix.
- Spring '11