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.

RELATED TERMS
  1. Accounts Receivable Subsidiary ...

    An accounting ledger that shows the transaction and payment history ...
  2. Asset Ledger

    The part of a company's accounting records that detail the journal ...
  3. Ledger Balance

    The balance of a customer account as shown on the bank statement. ...
  4. Due To Account

    A liability account typically found inside the general ledger ...
  5. General Ledger

    A company's main accounting records. A general ledger is a complete ...
  6. Liability Ledger

    The central file that contains a comprehensive list of all of ...
Related Articles
  1. Investing

    What's a General Ledger?

    As the heart of the double-entry accounting system, the general ledger is the record of a company's entire financial transaction history. The left side of the general ledger is for debits: assets, ...
  2. Economics

    Calculating the Accounts Payable Turnover Ratio

    The accounts payable turnover ratio measures the speed at which a company pays its suppliers.
  3. Professionals

    B. Record Keeping Regulations

    All broker dealers are required to prepare and maintain reports and records according to industry regulations. The content and timing of the reports depends on the nature of the report. SEC Rule ...
  4. Economics

    Explaining the Accounting Equation

    The accounting equation is the basis for double-entry accounting, and requires that every business transaction affect two accounts equally.
  5. Investing

    What's a Trial Balance?

    A trial balance is a worksheet listing the debit or credit balances of all the ledger accounts for an entity. Under accounting theory, the total of all the debits must equal the total of all ...
  6. Professionals

    The Balance Sheet

    Find out how to read this financial statement, and what it says about a company.
  7. Insurance

    How To Read a Permanent Life Insurance Illustration

    To help you understand your life insurance policy, companies provide a permanent life insurance illustration. Here is how to read and understand it.
  8. Professionals

    Balance Sheet Components - Liabilities

    CFA Level 1 - Balance Sheet Components - Liabilities. Learn about the different types of liabilities. A top down approach into the components of long-term and current liabilities.
  9. Professionals

    A. Introduction: Record Keeping, Financial Requirements, and Reporting

    All broker dealers are required to prepare and maintain reports and records according to industry regulations. The content and timing of the reports depends on the nature of the report. SEC Rule ...
  10. Investing

    Accounts Payable

    Accounts payable is the amount of a company's total invoices currently waiting to be paid. These invoices are from vendors for products and services that were recently delivered.
RELATED FAQS
  1. Are accounts payable an asset?

    Find out why the general ledger accounts payable is considered to be a current liability, not a current asset, and how it ... Read Answer >>
  2. 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 >>
  3. Are accounts payable counted as revenue?

    See how accounts payable is treated on the balance sheet, and why it is considered an expense and liability rather than revenue ... Read Answer >>
  4. 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 >>
  5. Should companies break out accounts receivables into subledgers?

    Find out why every company that sells on credit should break down its accounts receivable into individual customer subsidiary ... Read Answer >>
  6. Are accounts payable a liability?

    Take an in-depth look at accounts payable, or trade payable, an important current liability account listed on a company's ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center