The Purpose of A Subsidiary Ledger

What Is The Main Objective / Purpose Of Preparing Subsidiary Ledger Accounts?

The main or primary purpose of a Subsidiary Ledger or Subledger is to analyze various Transactions related to each individuals i.e., customers or suppliers in order to record individual accounts separately.

It helps us to avoid difficulty by separating each individual accounts in an alphabetical order and hence it is easy to prepare a General Ledger or Control Account that controls each individual accounts whether these are Accounts Receivable Subsidiary Ledgers or Accounts Payable Subsidiary Ledgers.