# Subledger

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{{Short description|Detailed record supporting a general ledger}}
The '''subledger''', or '''subsidiary ledger''', provides details behind entries in the [general ledger](/source/general_ledger) used in accounting.  The subledger shows detail for part of the accounting records such as property and equipment, [prepaid expense](/source/prepaid_expense)s, etc.  The detail would include such items as date the item was purchased or expense incurred, a description of the item, the original balance, and the net [book value](/source/book_value).  The total of the subledger would match the line item amount on the general ledger.<ref>[https://books.google.com/books?id=szEhYFsuAbsC&dq=subsidiary+ledger&pg=PT161 Internal Revenue Service Practice & Procedure Deskbook]</ref> This corresponding line item in the general ledger is referred to as the [controlling account](/source/controlling_account). The subsidiary ledger balance is compared with its controlling account balance as part of the process of preparing a [trial balance](/source/trial_balance).<ref>{{Cite book| last = Mills | first = Doug | title = Foundations of Accounting | publisher = UNSW Press | location = Sydney | year = 2000 | isbn = 0-908237-92-8 | page = 256}}</ref>

As part of an audit, a method of testing balances may include tracing individual acquisitions to the subsidiary ledger for amounts and descriptions.  The objective of this test is to determine that the current-year acquisitions schedule agrees with related subledger amounts, and the total agrees with the general ledger.<ref>{{Cite book|author=Alvin Arens & James Loebbecke |title=Auditing, An Integrated Approach |year=1980 |publisher=Prentice-Hall |location=New Jersey |isbn=0-13-051656-2 }}</ref>

Common subsidiary ledgers include [accounts receivable](/source/accounts_receivable), [accounts payable](/source/accounts_payable), [fixed asset](/source/fixed_asset) and [inventory](/source/inventory) ledgers.<ref>{{Cite book| last = Mills | first = Doug | title = Foundations of Accounting | publisher = UNSW Press | location = Sydney | year = 2000 | isbn = 0-908237-92-8 | page = 256}}</ref> With the adoption of standards such as [FASB](/source/Financial_Accounting_Standards_Board) ASC 350-60 and [IAS 38](/source/IAS_38) for [digital asset](/source/digital_asset)s, subsidiary ledgers have also been applied to [cryptocurrency](/source/cryptocurrency) holdings.<ref>{{Cite web |title=FASB Issues Standard to Improve the Accounting for and Disclosure of Certain Crypto Assets |url=https://www.fasb.org/news-and-meetings/in-the-news/fasb-issues-standard-to-improve-the-accounting-for-and-disclosure-of-certain-crypto-assets-397718 |website=Financial Accounting Standards Board |date=13 December 2023}}</ref>

==References==
{{Reflist}}

Category:Accounting journals and ledgers

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Adapted from the Wikipedia article [Subledger](https://en.wikipedia.org/wiki/Subledger) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Subledger?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.