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Subsidiary Ledger
The subledger, or subsidiary ledger, provides details behind entries in the general ledger used in accounting. The subledger shows detail for part of the accounting records such as property and equipment, prepaid expenses, etc. The detail would include such items as date the item was purchased or expense incurred, a description of the item, the original balance, and the net book value. The total of the subledger would match the line item amount on the general ledger. This corresponding line item in the general ledger is referred to as the controlling account. The subsidiary ledger balance is compared with its controlling account balance as part of the process of preparing a trial balance A trial balance is an internal financial statement that lists the adjusted closing balances of all the general ledger accounts (both revenue and capital) contained in the ledger of a business as at a specific date. This list will contain the name .... As part of an audit, a method of testing ba ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
General Ledger
In bookkeeping, a general ledger is a bookkeeping ledger in which accounting data are posted from General journal, journals and aggregated from subledgers, such as accounts payable, accounts receivable, cash management, fixed assets, purchasing and projects. A general ledger may be maintained on paper, on a computer, or in the cloud. A ledger account is created for each account in the chart of accounts for an organization and is classified into account categories, such as income, expense, assets, liabilities, and equity; the collection of all these accounts is known as the general ledger. The general ledger holds financial and non-financial data for an organization. Each account in the general ledger consists of one or more pages. It includes details such as the date of sale, invoice number, customer details, and the amount due. This ledger helps businesses track outstanding receivables and manage cash flow efficiently. An organization's statement of financial position and the i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prepaid Expense
In accounting, a deferral is any account where the income or expense is not recognised until a future date. In accounting, deferral refers to the recognition of revenue or expenses at a later time than when the cash transaction occurs. This concept is used to align the reporting of financial transactions with the periods in which they are earned or incurred, according to the matching principle and revenue recognition principle. Deferrals are recorded as either assets or liabilities on the balance sheet until they are recognized in the appropriate accounting period. Two common types of deferrals are deferred expenses and deferred income. A deferred expense represents cash paid in advance for goods or services that will be consumed in future periods. On the other hand, deferred income (or deferred revenue) is a liability that arises when payment is received for goods or services that have yet to be delivered or fulfilled. Deferred charge A deferred charge is a cost recorded ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Book Value
In accounting, book value (or carrying value) is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. Traditionally, a company's book value is its minus intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may variably include goodwill, intangible assets, or both.Graham and Dodd's ''Security Analysis'', Fifth Edition, pp 318 – 319 The value inherent in its workforce, part of the intellectual capital of a company, is always ignored. When intangible assets and goodwill are explicitly excluded, the metric is often specified to be ''tangible book value''. In the United Kingdom, the term net asset value may refer to the book value of a company. Asset book value An asset's initial book value is its actual cash value or its acquisition cost. Cash assets are record ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Controlling Account
In accounting, the controlling account (also known as an adjustment or control account definition in '''' lexicon) is an account in the for which a corresponding subsidiary ledger has been created. The subsidiary ledger allows for tracking transactions within the controlling account in more detail. Individual transactions are posted both to the controlling account and the corresponding subsidiary ledger, and the totals for both are compared when preparing a |
Trial Balance
A trial balance is an internal financial statement that lists the adjusted closing balances of all the general ledger accounts (both revenue and capital) contained in the ledger of a business as at a specific date. This list will contain the name of each nominal ledger account in the order of liquidity and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance. The debit balance values will be listed in the debit column of the trial balance and the credit value balance will be listed in the credit column. The trading profit and loss statement and balance sheet and other financial reports can then be produced using the ledger accounts listed on the same balance. History The first published description of the process is found in Luca Pacioli's 1494 work '' Summa de arithmetica'', in the section titled ''Particularis de Computis et Scripturis''. Although he did not use the term, he essentially prescribed a techniqu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |