Differentiate general and subsidiary ledgers in Smartbooks.

General Ledger in Smartbooks:

1. The general ledger in Smartbooks is the primary ledger that contains all the financial accounts of a business. It is the main book of accounts where all the financial data of a business is stored.

2. It includes all the five types of accounts: assets, liabilities, equity, revenue, and expenses.

3. The general ledger is used to prepare financial statements and reports. It provides a complete record of financial transactions over the life of the company.

4. The general ledger is organized by account, so each major category of accounts like sales, materials, or cash transactions is typically stored in a separate section or page.

Subsidiary Ledger in Smartbooks:

1. A subsidiary ledger, on the other hand, is a sub-ledger that records detailed transactions for a specific account, which is then summarized and posted to the general ledger.

2. Subsidiary ledgers are often used for accounts like accounts receivable, accounts payable, cash, inventory, and equipment.

3. The purpose of a subsidiary ledger is to provide detail about a single general ledger account. For example, an accounts receivable subsidiary ledger would include the detailed information for each of the individual customer accounts.

4. The total of all the individual accounts in the subsidiary ledger should equal the balance in the general ledger account.

In summary, the general ledger is a summary ledger that contains all the financial information of a business, while subsidiary ledgers provide detailed information about specific accounts. Both are essential components of a company's accounting system in Smartbooks.