What is the difference between a subsidiary of society and the main book?

The difference between subsidiaries and main books is functional. The main book of the company is the book of top accounts that make up its accounting system. A subsidiary is a sub-account of the main book account. Transaction of ordinary items in main books in the main categories of accounts. Details provide details for one of these line items and create a separate mini account for an item that can monitor transactions that are specific to one item.

All businesses are obliged to maintain the system of accounting by government agencies. Smaller businesses maintain books, so tax authorities can regularly collect sales, employment and income taxes. The main public corporations have these obligations and are also obliged by government regulatory bodies of securities to maintain the system of accounting to report the financial situation of the company to investors. Although non -public companies can technically maintain any kind of accounting that exactly reflects revenue and expenses, many correspond to their ST systemsAndards set by public corporations. Public corporations use a double entry accounting system that complies with standards set by the international and national committees for review standards of accounting standards.

Bounckeeping with double input is a system that monitors seven types of accounts:

• Asset
• liabilities
• Revenue
• Expenditure
• profits
• losses
• Owner owner

These accounts are called the main book together. The main book maintains general accounts that fall into seven categories of accounts. For example, businesses usually have main books on fixed assets, current assets, current obligations, long -term obligations, sales sales and administrative costs. Applications are made on these accounts by compensating debit and Credit notation.

because the main book accounts are the highest levels of accounts that may contain sub -Components, subsidiaries are used to provide details of the account line. The accounts of the subsidiary and the main books have a dependent relationship, but the way the person manages two types of accounts and enters information is the same. The difference between a subsidiary and the main book accounts is simply in the way the accounts are used.

For example, a wholesaler would usually keep an account for sale. This account is a top book account because it collects all sales information according to the period. However, the wholesaler probably has client accounts that make up the sale data and can be listed in the main book by placing each client on a separate line with the total amount of sales for each client per year. In the accounting system, every client could have the main books of the main books attached books of subsidiaries. Individual transactions that are specific to this client would be recorded in the Client's subsidiary account as details of the total amountMenáná in the main book.

subsidiaries and accounts of the main books check and balance each other. The main book line that the details of the subsidiary are called a check -up account. Complete transactions in the subsidiary must equal the amount on the corresponding line in the main book account to keep the accounts in balance.