Difference Among / Between A Trial Balance, General Ledger And Sub-Ledger Accounts

Trial Balance VS General Ledger VS Sub-Ledger Accounts

In Trial Balance, the arithmetical accuracy of all of the Ledger’s Accounts are tested i.e., the total of all of the debits accounts must be equal to the total of all of the credits accounts in monetary value.

In General Ledger, those accounts are recorded which occurred very often such as Sale of Fixed Assets, Sales Returns and Allowances, Purchase Returns and Allowances, etc.

In Sub-Ledger Accounts, individual records are recorded such as sales on account made to each customer is recorded separately. For example, credit sales to Mr. A is recorded in Mr. A’s Account Receivable Ledger and Mr. A’s Sales Ledger, credit sales to Mr. B is recorded in Mr. B’s Accounts Receivable’s Ledger and Mr. B’s Sales Ledger and so on. All of the individuals totals are then aggregated in Master Ledger such as “Sales Account”, “Accounts Receivable Account”, Accounts Payable Account, etc.

So, we can say that a trial balance is such a ledger which shows arithmetical accuracy of Books of Accounts. General ledger records those Transactions which are created very often i.e., the transactions related to accounts occurred very few in number. Sub-ledger accounts record individual specific information separately in order to know the particular records of each individual separately.