Subsidiary Ledger
A Subsidiary Ledger is like a detailed notebook that bookkeepers and accountants use to track specific types of financial items, such as what customers owe (accounts receivable) or what is owed to suppliers (accounts payable). Think of it as a sub-folder that contains all the individual records, while the main ledger (general ledger) just shows the total. For example, if a company has 100 customers who owe money, the subsidiary ledger tracks each customer separately, while the main ledger shows just the total amount owed by all customers. This helps keep financial records organized and makes it easier to find specific information when needed. Other common names for this are "sub-ledger" or "auxiliary ledger."
Examples in Resumes
Managed Subsidiary Ledger entries for accounts receivable with over 200 client accounts
Reconciled Sub-Ledger balances with general ledger on a monthly basis
Implemented new Auxiliary Ledger tracking system that improved accuracy by 35%
Typical job title: "Bookkeepers"
Also try searching for:
Where to Find Bookkeepers
Professional Associations
Online Communities
Job Resources
Example Interview Questions
Senior Level Questions
Q: How do you handle discrepancies between subsidiary ledgers and the general ledger?
Expected Answer: A senior bookkeeper should explain their systematic approach to reconciliation, including reviewing transaction history, identifying timing differences, and implementing controls to prevent future discrepancies.
Q: How would you set up subsidiary ledgers for a new business division?
Expected Answer: Should discuss needs assessment, chart of accounts organization, establishing procedures for daily entries, and training staff on proper documentation and reconciliation processes.
Mid Level Questions
Q: What types of subsidiary ledgers have you worked with?
Expected Answer: Should be able to discuss common types like accounts receivable, accounts payable, and inventory ledgers, along with their purposes and basic maintenance procedures.
Q: How often should subsidiary ledgers be reconciled with the general ledger?
Expected Answer: Should explain typical reconciliation schedules (usually monthly), importance of regular checking, and signs that more frequent reconciliation might be needed.
Junior Level Questions
Q: What is the purpose of a subsidiary ledger?
Expected Answer: Should explain that it provides detailed records for specific accounts while the general ledger shows totals, making it easier to track individual transactions and customer/vendor accounts.
Q: How do you post entries to a subsidiary ledger?
Expected Answer: Should describe basic process of recording detailed transactions, including date, amount, and reference numbers, and understand how these connect to the general ledger.
Experience Level Indicators
Junior (0-2 years)
- Basic bookkeeping principles
- Data entry accuracy
- Understanding of debits and credits
- Basic reconciliation tasks
Mid (2-5 years)
- Regular reconciliation procedures
- Multiple subsidiary ledger management
- Error detection and correction
- Report generation and analysis
Senior (5+ years)
- Complex reconciliation problem-solving
- System implementation and improvement
- Staff training and supervision
- Process optimization and automation
Red Flags to Watch For
- Unable to explain basic reconciliation processes
- No experience with accounting software
- Poor attention to detail in sample work
- Lack of understanding about the relationship between subsidiary and general ledgers
Related Terms
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