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? Post as an attachment
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.