Which of the following is a common Subsidiary Ledger?

Which of the following is a common Subsidiary Ledger?

• A. Inventory Ledger
• B. Accounts Receivable Ledger
• C. Tax Ledger
• D. Cash Ledger

Answer: (B)

The Accounts Receivable Ledger is a common subsidiary ledger because it is specifically designed to track amounts owed to a business by its customers. This ledger provides detailed information about each customer’s transactions, including invoices issued, payments received, and outstanding balances. By maintaining this separate ledger, businesses can more effectively manage their receivables, monitor cash flow, and reconcile accounts more accurately.

The Inventory Ledger, while important, is typically considered part of the general ledger rather than a subsidiary ledger, as it usually summarizes inventory information rather than tracking individual customer transactions. The Tax Ledger may help track tax liabilities and payments but is not as commonly referenced as a standard subsidiary ledger. The Cash Ledger, like the Inventory Ledger, focuses more on overall cash transactions rather than customer-specific information. Thus, the Accounts Receivable Ledger stands out as the most appropriate choice among typical subsidiary ledgers used in accounting.