The Qquestion is : What are the two common subsidiary ledgers?

The Qquestion is :

What are the two common subsidiary ledgers? Please describe.

My answer:

Accounting to our text (Kieso, Kimmel & Weygandt, 2015). We have learn of two ledger common accounts

Accounts Receivable -when the customer have to pay for the services or product they received from that company. This is an asset to that company
Accounts Payable – when a company buy something for credit from a lender, such as a supplier for goods or services.

Suppose Company X retails products to Company Y for a credit for no more than a 60day period. Therefore company X will record a sale and will also record this as an account receivable. Company Y will record the purchase and will also record it to an account payable.

However, look at it this way “There is always another side to every transaction." Now accounting should believe in evenness: Company X has a sale and a receivable, Company Y has a purchase and a payable.

Robyn

Weygandt, J. J., Kimmel, P. D., Kieso, D. E. (2015-01-05). Accounting Principles, 12th Edition. [Kaplan]. Retrieved from https://kaplan.vitalsource.com/#/books/9781119034360/