Difference between General Ledger and Subsidiary Ledger

Difference between General Ledger and Subsidiary Ledger

General ledger contains all accounts and control account for some transaction. Control accounts basically a summary account for large number of accounts.

Subsidiary ledger contains the individual account of debtor and creditor. Subsidiary ledger is maintained for better management of record because technically it is not feasible for general ledger to have hundred of individual account.

1. Double Entry

General ledger is integral record and forms a double entry cycle. Subsidiary ledger is memorandum record in the accounting cycle.

2. Updating

Subsidiary ledger is updated immediately. General ledger is update on periodical especially for control accounts.

3. Reporting

General ledger provides necessary information for preparation of financial statement on timely bases. Where the subsidiary has no direct role in preparation of financial statement.

4. Control

 Subsidiary ledger provides useful information for tracking and controlling the debtor and creditor. Credit policy control is implemented through subsidiary ledger information.