sub-ledger

(noun)

A subset of the general ledger used in accounting. The subledger shows detail for part of the accounting records such as property and equipment, prepaid expenses, etc.

Examples of sub-ledger in the following topics:

  • Accounts Payable

    • In addition to its disclosure on the balance sheet, accounts payable is recorded in the A/P sub-ledger at the time an invoice is vouchered for payment.
    • Vouchered, or vouched, means that an invoice is approved for payment and has been recorded in the general ledger or A/P sub-ledger as an outstanding, or open, liability because it has not been paid.

  • Inputs to Accounting

    • The bookkeeper is responsible for ensuring all transactions are recorded in the correct day book, suppliers ledger, customer ledger, and general ledger.
    • In modern accounting softwares or ERP, the general ledger works as a central repository for accounting data transferred from all sub-ledgers or modules like accounts payable, accounts receivable, cash management, fixed assets, purchasing, and projects.
    • Each account in the general ledger consists of one or more pages.
    • The general ledger is where posting to the accounts occurs.
    • The general ledger works as a central repository for accounting data transferred from all sub-ledgers or modules like accounts payable, accounts receivable, cash management, fixed assets, purchasing, and projects.

  • Trade Credit or Accounts Payable

    • An accounts payable is recorded in the A/P sub-ledger at the time an invoice is vouchered for payment.

  • Posting

    • Posting is recording in the ledger accounts the information contained in the journal.
    • Each individual journal entry directs the input of a certain dollar amount as a debit in a specific ledger account, and directs the input of a certain dollar amount as a credit in a specific ledger account.
    • When posting the general journal, the date used in the ledger accounts is the date the transaction was recorded in the journal, not the date the journal entry was posted to the ledger accounts.
    • The general ledger contains all entries from both the General Journal and the Special Journals.
    • Describe how posting affects the General Journal, Special Journal and General Ledger

  • The Accounting Cycle

    • The accounting cycle includes analysis of transactions, transferring journal entries into a general ledger, revenue, and expense closed.
    • These Journal entries are then transferred to a Ledger, which is the group of accounts, also known as a book of accounts.
    • The purpose of a Ledger is to bring together all of the transactions for similar activity.
    • Once the entries have all been posted, the Ledger accounts are added up in a process called Balancing.
    • This lists all the balances from all the accounts in the Ledger.

  • Ledgers

    • So, what is a ledger?
    • Most organizations operate with two types of ledgers, the General Ledger and one or more subsidiary ledgers.
    • A General Ledger is a perpetual record of the activity and balances of the accounts.
    • Each company has only one General Ledger (Universal Accounting 2009)
    • The sum of the customer balances in the Accounts Receivable Subsidiary Ledger must equal the Accounts Receivable balance in the company's General Ledger.

  • A short history of accounting and double entry bookkeeping

    • "The treatise described double-entry bookkeeping—that for every credit entered into a ledger there must be a debit, a concept created by Florentine merchants and hailed by Goethe as "one of the most beautiful discoveries of the human spirit".
    • It does this by ensuring that each individual transaction is recorded in at least two different (sections) nominal ledgers of the financial accounting system and so implementing a double checking system for every transaction.
    • A Debit value will always be recorded on the debit side (left hand side) of a nominal ledger account and the credit value will be recorded on the credit side (right hand side) of a nominal ledger account.
    • A nominal ledger has both a Debit (left) side and a Credit (right) side.
    • If the values on the debit side are greater than the value of the credit side of the nominal ledger then that nominal ledger is said to have a debit balance.Each transaction must be recorded on the Debit side of one nominal ledger and that same transaction and value is also recorded on the Credit side of another nominal ledger hence the expression Double-Entry (entered in two locations) one debit and one credit (Wikipedia 2009d).

  • Summary

    • One of the most interesting thing about social structures is their sub-structure in terms of groupings or cliques.
    • The number, size, and connections among the sub-groupings in a network can tell us a lot about the likely behavior of the network as a whole.
    • To what extent do the sub-groups and social structures over-lap one another?
    • All of these aspects of sub-group structure can be very relevant to predicting the behavior of the network as a whole.
    • The location of individuals in nets can also be thought of in terms of cliques or sub-groups.

  • What Is a Receivable?

    • The accounts receivable departments use the sales ledger.
    • This is because a sales ledger normally records:

  • Study Questions

    • Which studies used the ideas of group sub-structures?
    • Are there sub-structures within the kinship group of which you are a part?
    • How is the population of Riverside divided into sub-structures?
    • Are the nations in the world system divided into sub-structures in some way?
    • How might the sub-structures in your real world case be described using the formal concepts (are the sub structures "clans" or "factions" etc.).