Difference Between The Accounts Receivable Subsidiary Ledger And Accounts Payable Subsidiary Ledger

Accounts Receivable Subsidiary Ledger Or Subledger And Accounts Payable Subsidiary Ledger Or Subledger / Difference Between The Debtor Subsidiary Ledger And Creditor Subsidiary Ledger

In Accounts Receivable Subsidiary Ledger, individual records of each customer are recorded separately while in Accounts Payable Subsidiary Ledger, each supplier or vendor’s specific records are recorded separately.

From accounts receivable subsidiary ledger account, we know about Cash Collected From Customers and Credit Sales while from accounts payable subsidiary ledger account, we know about Cash Paid to Suppliers or Vendors and Credit Purchases.

Usually, accounts receivable subledger beginning balance is started on debit side and ending balance on credit side while accounts payable subledger opening balance is started on credit side and closing balance on debit side normally.

Accounts receivable subsidiary ledger shows us the information of parts of current asset i.e., the amount of receivables from each customer (Mr. A, Mr. B, Mr. C, etc.) to whom the corporation Sold Merchandise On Account while accounts payable subsidiary ledger gives us the information about (parts of current liability) the amount payable by the business to each supplier or vendor such as Supplier A, Supplier B, Supplier C, etc., to whom the business Purchased Merchandise On Account.

The amount of receivables from each customer is totalled in main or master ledger account known as “Accounts Receivable Control Ledger Account” while the amount payable by the business to each specific vendor / supplier is summed up in one master ledger account called as “Accounts Payable Control Ledger Account”.