Receivable ledger and Payables ledger are examples of which broader category?

• A. Subsidiary ledgers
• B. Main ledgers
• C. Control accounts
• D. Nominal ledgers

Answer: (A)

Sub-ledgers are the detailed records that sit beneath the general ledger. The receivable ledger tracks each individual customer’s balance, and the payables ledger tracks each supplier’s balance. The sum of all the individual balances in these sub-ledgers is posted to the corresponding control accounts in the general ledger (often called Accounts Receivable and Accounts Payable). This setup lets you see both the total amount owed and the underlying details for who is owed what. The other options don’t fit: a main or general ledger holds the control accounts and nominal accounts, not the detailed customer and supplier records; and control accounts are the summarized totals in the general ledger, not the detailed ledgers themselves.