Accounts Receivable Subsidiary Ledger

Here we will study about Accounts Receivable Subsidiary Ledger in Accounting.

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Accounts Receivable Subsidiary Ledger is, basically, the account of individuals persons or customers of the company. For Example, Mr. is the Customer, Mr. B and so on. Then individual account is maintained for each of individuals in the concerned Subsidiary or Sub-Ledger Account. e.g., Mr. A, Mr. B and so on.

All the Balances of Subsidiary Ledgers of Customers are totaled or sum up and transferred to Accounts Receivable Control Account or Main Account or Master Account.

Let Suppose, There are three Customers to whom the company ABC sold goods worth Rs. 100000. Rs. 30000 Sold Goods to Mr. A. Rs. 40000 To Mr. B And Rs. 30000 To Mr. C On Credit Basis. Then Subledger for Each of these customers are maintained by the company with their respective names as shown below:

For Customer, Mr. A 

ABC Company

Mr. A (Accounts Receivable)

                                Rs.                                                                                 Rs.

 Sales                    30000

                                                                                       Balance c/d         30000

For Accounts Receivable, Mr. B

ABC Company

Mr. B (Accounts Receivable)

                                Rs.                                                                                   Rs.

     

 Sales                    40000

                                                                                          Balance c/d         40000

For Debtor, Mr. C

ABC Company

Mr.C (Accounts Receivable)

                                Rs.                                                                               Rs.

 Sales                    30000

                                                                                     Balance c/d         30000

The total of all the balances (30000 + 40000 + 30000 = 100000) will be added to the Accounts Receivable Control Account at One place and then its final Net Realizable Value will be transferred to Balance Sheet Under Current Assets Section of Assets Side.

So, it is all about Accounts Receivable Subsidiary Ledger or Subledger in Accounting.