What are the advantages of using subsidiary ledger?

Answer:
When using a General Ledger, accounts such as Accounts Payable or Accounts Receivable are much easier to work with in the General Ledger if they have a "single" sum of all accounts, in other words for example you have 100 customers that owe you "X" amount of money total. The sum of all the accounts can be listed in the General Ledger, while each specific account detail, i.e customer information, amount owed, etc, can be kept separate in a Subsidiary Ledger.

Contributor: JosephAllen2005
First answer by JosephAllen2005. Last edit by JosephAllen2005. Contributor trust: 113 [recommend contributor recommended]. Question popularity: 1 [recommend question].

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