Unformatted text preview: information from the General ledger. What is a control account and what purpose does it serve? A control account is a General ledger account that summarizes the subsidiary ledger data. Which two general ledger accounts may act as control accounts for a subsidiary ledger? The account receivable and the accounts payable. What are the advantages of using subsidiary ledgers? By using subsidiary ledgers, you can have up to date information on the specific account balances of transactions a single creditor or customer. A subsidiary ledger also makes it easier to locate possible errors in an account because there are fewer accounts to have to go through. Another reason that subsidiary ledgers are beneficial is that they keep the general ledger free of excessive details. Making it easier to decipher. One person can be making posts to the General ledger at the same time as someone is posting to a subsidiary ledger....
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This note was uploaded on 12/13/2011 for the course ACCOUNTING ACC 280 taught by Professor Kenfredrickson during the Spring '09 term at University of Phoenix.
- Spring '09