Lesson: Subsidiary Ledger vs. General Ledger

In this lesson, the distinction between subsidiary ledgers and general ledgers is explained. The importance of understanding these concepts is emphasized, as they may not have been covered extensively in college courses or internships. General ledgers are described as containing multiple transactions, while subsidiary ledgers contains detailed information about a specific account within the general ledger. Various examples of subsidiary ledgers are mentioned, including property, plant and equipment (PP&E), accounts receivable (AR), and investments. Additionally, the lesson highlights the role of subsidiary ledgers in providing additional information for reconciling the general ledger and in guiding auditors to the appropriate sources of audit evidence.