Appendix I - Subsidiary ledgers and special journals. The following will be discussed in this chapter: Describe the nature and purpose of a subsidiary ledger, record transactions in special journals, indicate how companies post a multi-column journal. | Accounting in Action Learning Objectives After studying this chapter, you should be able to: [1] Describe the nature and purpose of a subsidiary ledger. [2] Explain how companies use special journals in journalizing. [3] Indicate how companies post a multi-column journal. AppendixI Subsidiary Ledgers and Special Journals Used to keep track of individual balances. Two common subsidiary ledgers are: Accounts receivable (customers’) Accounts payable (creditors’) Each general ledger control account balance must equal the composite balance of the individual accounts in the related subsidiary ledger. Expanding the Ledger-Subsidiary Ledgers LO 1 Illustration I-1 Relationship of general ledger and subsidiary ledgers Subsidiary Ledger Example Expanding the Ledger-Subsidiary Ledgers LO 1 Illustration I-3 Relationship between general and subsidiary ledgers Subsidiary Ledger Example Expanding the Ledger-Subsidiary Ledgers LO 1 1. Show in a single account transactions affecting one customer or one creditor. 2. Free the general ledger of excessive details. 3. Help locate errors in individual accounts. 4. Make possible a division of labor. Advantages of Subsidiary Ledgers Expanding the Ledger-Subsidiary Ledgers LO 1 Accounting in Action Learning Objectives After studying this chapter, you should be able to: [1] Describe the nature and purpose of a subsidiary ledger. [2] Explain how companies use special journals in journalizing. [3] Indicate how companies post a multi-column journal. AppendixI Subsidiary Ledgers and Special Journals Used to record similar types of transactions. If a transaction cannot be recorded in a special journal, the company records it in the general journal. Illustration I-4 Use of special journals and the general journal Expanding the Ledger-Special Journals LO 2 Each of the following is a subsidiary ledger except the: accounts receivable ledger. accounts payable ledger. customers’ ledger. general ledger. Review Question Expanding the Ledger-Special . | Accounting in Action Learning Objectives After studying this chapter, you should be able to: [1] Describe the nature and purpose of a subsidiary ledger. [2] Explain how companies use special journals in journalizing. [3] Indicate how companies post a multi-column journal. AppendixI Subsidiary Ledgers and Special Journals Used to keep track of individual balances. Two common subsidiary ledgers are: Accounts receivable (customers’) Accounts payable (creditors’) Each general ledger control account balance must equal the composite balance of the individual accounts in the related subsidiary ledger. Expanding the Ledger-Subsidiary Ledgers LO 1 Illustration I-1 Relationship of general ledger and subsidiary ledgers Subsidiary Ledger Example Expanding the Ledger-Subsidiary Ledgers LO 1 Illustration I-3 Relationship between general and subsidiary ledgers Subsidiary Ledger Example Expanding the Ledger-Subsidiary Ledgers LO 1 1. Show in a single account transactions affecting one customer or one