Question { 9095 }

How is sub ledger linked to GL?

Answer

Hi

If you really want to know (conceptually) the link between a general ledger and a sub ledger then you must know that it is like a parent child relationship. For e.g. Accounts receivable is a GL account whereas balance from Debtor 1, Debtor 2 etc... are sub ledgers of that GL account.

Read this for better understanding> http://www.accountingcapital.com/books-and-accounts/subledger/

Question { ABC, 3551 }

What is AR, AP, what transctions comes under this.

Answer

Accounts Receivable is the money owed by the customers for goods or services bought on credit. A receivable account can be created by someone who sells goods or services and extends a line of credit to its customers.

Similarly Accounts payable is the obligation of a business that is originated because of purchases made on credit (e.g. for raw material, finished goods etc.), the money is yet to be paid for these transactions.

I found 2 good articles for you on this

http://www.accountingcapital.com/revenues/accounts-receivable/

or

https://en.wikipedia.org/wiki/Accounts_receivable

&

http://www.accountingcapital.com/expenses/accounts-payable/

or

https://en.wikipedia.org/wiki/Accounts_payable

Thanks!