Accounts Payable Subsidiary Ledger

What is an 'Accounts Payable Subsidiary Ledger'

An accounts payable subsidiary ledger is an accounting ledger that shows the transaction history and amounts owed separately for each supplier from whom the business receives credit for purchases. The balance in the customer accounts is periodically reconciled with the accounts payable (AP) balance in the general ledger to ensure accuracy. The AP subsidiary ledger is also commonly referred to as the AP subledger or subaccount.

BREAKING DOWN 'Accounts Payable Subsidiary Ledger'

The utility of the accounts payable subsidiary ledger lies in the fact that it can show at a glance the amounts owed to a specific supplier. For example, the general balance may show a total accounts payable balance of $50,000, but it will not show which supplier is owed how much. This information can be gleaned from the accounts payable subsidiary ledger.

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RELATED FAQS
  1. What is the difference between accrual accounting and accounts payable?

    Understand the difference between accrual accounting, an accounting method, and accounts payable, which is a ledger entry ... Read Answer >>
  2. What is double entry bookkeeping and how does it work in the general ledger?

    Learn about the double entry method of bookkeeping and how it works in the general ledger. Every accounting transaction has ... Read Answer >>
  3. Are accounts payable a liability?

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  4. Are accounts payable an expense?

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  5. How are Net Credit Purchases calculated in the accounts payable turnover ratio?

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    Know the key points when balancing a ledger and why it's essential to understand the relationship between credits and debits ... Read Answer >>
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