Abhishek PanegalAbhishek Panegal asked 5 months ago

I am still not clear on Subsidiary General Ledger as to how it functions and its implications on bank

1 Answers
RaviRavi Staff answered 5 months ago

in ipcc we had chapter of self balancing ledger
ledger was split in 3 parts general ledger, debtor ledger, creditor ledger
now in general ledger we had debtor ledger adjustment and creditor ledger adjustment account so that general ledger can balance its trial balance
now these debtor’s ledger or creditor’s ledger are examples of subsidiary ledger so that accounting can be done independently
so we can have separate ledger for deposits etc as those areas are important

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