XACC 280 Week 4 CheckPoint - Subsidiary Ledgers and Special Journals

Checkpoint: Subsidiary Ledgers and Special Journals
• Explain in 250 to 300 words, your answers to the following
o What are the advantages of the four different special journals? When would you use each type?
o What is a subsidiary ledger and what purpose does it serve?
o What is a control account and what purpose does it serve?
o Which two general ledger accounts may act as control accounts for a subsidiary ledger?
o What are the advantages of using subsidiary ledgers?
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Each journal of accounting has its own advantage. The first journal, a sales journal, is used to record all the sale transactions of a company. This includes the sale of goods and the sale of services which depends on the type of business being recorded. The advantage of a sales journal lies in the company’s ability to record each sale transaction on on-line saves time. The sales journal also reduces the risk of posting errors on the general ledger.
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