Subledger VS General Ledger Or Subsidiary Ledger VS General Ledger

Here we discuss the difference between Subledger and General Ledger or Subsidiary Ledger and General Ledger.

You may also be interested in “Difference Between General Journal and General Ledger”

1. General Ledger is the master book of all the individual ledgers.

2. Subledger is the Subidiary Ledger which includes accounts of individuals, individuals persons or customers.

3. General Ledger is a wider term while Subledger is a narrow term.

4. General Ledger is the Control Account where all the transactions are finally totaled from the Subledger.

5. In subledger we record individuals records of customers or suppliers or sales or purchases, etc. and all these accounts are totaled at one place in Control Ledger or General Ledger or Master Ledger.

6. Here we discuss an example of Accounts Receivable.

Suppose, if the company has many customers and there are so many Business Transactions occurred on daily basis, then the Accountant of the company maintains separate Subledgers for each Customers. At the end of Current Accounting Period, the accountant finally separates the balances of all the subledgers and transferred these totals to Accounts Receivable Ledger which is a General Ledger or Control Ledger.

Subledger For Customer A is Mr. A, For B customer is Mr.B and so on. At the end of accounting period subledgers for Customer A, B and so on, are balanced and transferred to Accounts Receivable Ledger which is a Control Ledger of all customers. Similarly, all the Control Ledgers are made for Accounts Payable, Purchases, Sales, Payroll, etc.

So, General Ledger is the master Ledger or Control Ledger whereas Subledger or Subsidiary Ledger is the individual separate records.