What is the primary purpose of a subsidiary ledger schedule?

The primary purpose of a subsidiary ledger schedule is to provide a detailed breakdown that connects the control account with individual transactions or items. The control account, which is recorded in the general ledger, summarizes the total of a group of related accounts. However, it does not provide specific details about each individual account.

By using a subsidiary ledger schedule, a business can track the individual accounts and transactions that contribute to the totals in the control account, ensuring accuracy in reporting and facilitating better management of accounts. This structure allows for more precise monitoring and analysis, making it easier to identify discrepancies or issues within the accounts. Thus, the subsidiary ledger schedule serves as a crucial tool for reconciling the control account with the individual transactions, enhancing clarity and detail in the overall accounting system.