Subsidiary Ledger for Dummies
noun
What does Subsidiary Ledger really mean?
Hey there! Not to worry, I'll make sure you understand what a "subsidiary ledger" means. You know, sometimes it can be difficult to keep track of all the transactions and information in a big company, right? Well, that's where a subsidiary ledger comes in handy.
Imagine you have a huge collection of your favorite trading cards, and you want to keep it organized. Now, you could just keep all the cards in one big pile, but it would be quite challenging to find the specific card you're looking for, right? So, what do you do? You decide to create smaller groups or categories of the cards, based on the player, team, or year. That way, if you want to find a specific card, you can easily go to the smaller group it belongs to.
Similarly, in accounting (which is like keeping track of money and business stuff), a subsidiary ledger is like a collection of smaller groups or categories that help keep track of specific types of transactions. It's like having different card boxes for different sets of trading cards, making it easier to find what you're looking for.
There are different types of subsidiary ledgers, but let's focus on one example for now. Say you're a business owner, and you have a bunch of different customers. You create a subsidiary ledger that specifically tracks all the transactions and information for each individual customer. So, instead of having one big messy pile of information for all your customers, you have separate sections for each customer, neatly organized.
Now, let's say a customer named Alex buys something from your store. You record the details of the sale in Alex's section of the subsidiary ledger. If another customer named Sophie makes a purchase, you record that in Sophie's section. By doing this, you can easily see how much money each customer owes you, what they purchased, and any other important information.
So, in a nutshell, a subsidiary ledger is like a set of smaller, categorized groups that help businesses keep track of specific transactions or information. It allows them to know where to find specific details more easily and keep things organized. It's kind of like how you organize your trading cards into smaller groups based on player, team, or year. Easy, right?
Revised and Fact checked by Michael Davis on 2023-10-28 22:07:33
Subsidiary Ledger In a sentece
Learn how to use Subsidiary Ledger inside a sentece
- A subsidiary ledger is like a special folder that keeps track of all the money a person borrows from different friends.
- Imagine you have a big piggy bank, but you want to know exactly how much money you have in coins and how much in bills. So, you create two separate jars - one for coins and another for bills. These two jars are like subsidiary ledgers because they help you keep track of your money in a more detailed way.
- Let's say you have a candy shop, and you want to know exactly how much money you made from selling different types of candy, like chocolate bars and lollipops. You can use a subsidiary ledger to record the sales of each candy separately.
- Imagine you have a big board game collection, and you want to keep track of who borrowed each game. You create a special notebook where you write down the name of the game and the name of the person who borrowed it. This notebook is like a subsidiary ledger because it helps you remember who has what game.
- If you have a lot of pets at home, and you want to remember when each one needs to go to the vet for a check-up or vaccination, you can create a separate list for each pet. These individual lists work like subsidiary ledgers because they help you keep track of the health needs of each pet individually.
Subsidiary Ledger Hypernyms
Words that are more generic than the original word.