A subledger holds the line-by-line detail behind a summary figure in the general ledger. Rather than clutter the general ledger with every customer or supplier, the detail sits in a subledger that totals to one control account.
What it means
A debtors subledger, for example, has an account for each customer; their balances add up to the single debtors control account in the general ledger. This keeps the general ledger concise while preserving the detail needed to chase an individual balance. The subledger total and its control account must always agree.
Where it fits in
Payroll can work the same way: a payroll subledger holds per-employee detail that rolls up into summary salary and liability accounts in the general ledger. Reconciling the subledger to its control account is a routine check that the detail and the summary match.
Key rules
- Holds the detailed records behind a general-ledger control account.
- Common for debtors, creditors and payroll detail.
- The subledger total must equal its control account.
- Keeps the general ledger concise while preserving detail.
