PRC-1 · Chapter 3 · Question 66 of 100
What is the primary difference between the General Ledger and a subsidiary ledger (such as the Receivables Ledger)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The General Ledger contains the main double-entry control accounts, while subsidiary ledgers contain memorandum details of individual customer/supplier accounts.
Explanation
Subsidiary ledgers provide the breakdown of individual accounts (like specific customers), whereas the General Ledger holds the aggregate control accounts that form the core double-entry system.
More Ledgers and Trial Balance MCQs
- Q68The Sales Day Book shows a monthly total of Rs. 350,000. What is the correct double-entry for posting this total to the General Ledger?
- Q69The total of the 'Discount Allowed' column in the cash book is Rs. 4,500 for the period. Where is this total posted in the General Ledger?
- Q70The total of the 'Discount Received' column in the cash book is Rs. 3,200. What is the correct posting for this total in the General Ledger?
- Q71An invoice for Rs. 5,000 sent to a customer was completely lost and never entered into any book of prime entry or ledger. What type of…
- Q72A payment of Rs. 400 for telephone charges was incorrectly debited to the electricity account. Both accounts are expense accounts. What…