What is difference between general ledger and sub ledger?

The major differences between the general ledger and sub-ledger are as follows −

General ledger

  • Master account in which accounting transactions are recorded.

  • Account receivables account payable, cash management, bank management and fixed asset.

  • Have different characteristics for different transactions.

  • One ledger account.

  • Data volume is limited.

  • Have a chart of accounts.

  • Controls sub-ledger.

  • Trail balance prepared.

Sub ledger

  • Intermediate set of accounts linked to the general ledger.

  • Customer accounts, vendor accounts, bank accounts and fixed assets.

  • All transactions have the same characteristics.

  • Can have multiple sub-ledger accounts.

  • Data volume is large.

  • Don’t have charts of accounts.

  • Part of the general ledger.

  • Trail balance is not prepared.

Updated on: 24-Jul-2020


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