Accounts Payable Subsidiary Ledger

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DEFINITION of 'Accounts Payable Subsidiary Ledger'

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.

INVESTOPEDIA EXPLAINS '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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    Accounts payable is considered a current liability, not an asset, on the balance sheet. The value listed next to accounts ... Read Full Answer >>
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    In financial accounting, revenue entries are made in the general ledger whenever a business receives, or expects to receive, ... Read Full Answer >>
  3. Should companies break out accounts receivables into subledgers?

    All companies that sell on credit should have subledgers for their accounts receivables, especially if the company also acts ... Read Full Answer >>
  4. What are some examples of a deferred tax liability?

    In the United States, laws allow companies to maintain two separate sets of books for financial and tax purposes. Because ... Read Full Answer >>
  5. Why is the use of contra accounts so important for maintaining ledgers?

    Contra accounts have been used in financial accounting to verify the balance of another corresponding account since Renaissance ... Read Full Answer >>
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