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What is Sales Subsidiary Ledger
A Sales Subsidiary Ledger or Sales Subledger shows credit sales from each customer ledger accounts during the accounting cycle. In other words, it shows how much Credit Sales is made by the company with each customers during the accounting period. It shows detailed information of each sales subsidiary ledgers’ balances separately in order to avoid difficulty in preparing Sales Control Ledger or Sales Master Ledger Account.
For Example, Mr. A, B, C, etc., are customers of the company to whom the company sold goods or services on account. Then the company’s
accountant prepares Sales Subsidiary Ledger Account for customers, Mr. A, Mr. B and so on. All the closing balances of each sales accounts are finally totaled in
Sales Control Ledger Account to represent the value of credit sales to be shown in the Income Statement for the accounting period.
A Sales Subsidiary Ledger or Sales Subledger shows credit sales from each customer ledger accounts during the accounting cycle. In other words, it shows how much Credit Sales is made by the company with each customers during the accounting period. It shows detailed information of each sales subsidiary ledgers’ balances separately in order to avoid difficulty in preparing Sales Control Ledger or Sales Master Ledger Account.
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