The composite balance of individual accounts in the accounts payable subsidiary ledger must
A) equal the composite balance of the individual accounts in the accounts receivable subsidiary ledger.
B) always be zero.
C) equal the balance of the accounts payable account in the general ledger.
D) agree with the total of the Accounts payable column in the cash receipt journal.

Question

Quizplus · Accepted Answer

The composite balance of individual accounts in the accounts payable subsidiary ledger must equal the balance of the accounts payable account in the general ledger. This ensures that the total liabilities recorded in the general ledger are supported by detailed information in the subsidiary ledger. Options A, B, and D are incorrect as they do not accurately reflect the purpose of the accounts payable subsidiary ledger.

The Composite Balance of Individual Accounts in the Accounts Payable