Helper's Big Book: Definition And Types

Illustration of the auxiliary ledger. (photo: Doc. Pixabay)

YOGYAKARTA - The auxiliary ledger is one of the important financial documents that must be understood. The assistant's ledger has several functions, one of which is in recording business receivables.

In accounting, there are indeed several types of bookkeeping that must be known. Some bookkeeping is mandatory and must be carried out, but some have optional properties; it can be used, or it can also not be used.

These types of bookkeeping include income bookkeeping, expenses bookkeeping, fixed asset bookkeeping, cash flow bookkeeping, and financial bookkeeping.

In addition, there are also books or auxiliary ledgers that will be discussed below.

In the 2019 Accounting Introductory Book, the auxiliary ledger is part of a public ledger, which contains details about certain accounts contained in the ledger.

The auxiliary ledger is also referred to as a subsidiary liner, which serves to record all transactions in the company. However, the notes in this book are more detailed and adapted to the account in question.

This is the reason why the auxiliary ledger is also said to be an extension of the general ledger. In general ledgers, transaction records per written account are general or global.

However, business financial records require more complex data, so other documents are needed. Therefore, an auxiliary ledger is needed.

Because this document contains a detailed transaction note, its contents are also more tactical sourced from financial evidence, such as invoices, receipts, notes, invoices, and so on.

As for practice, there are several types of auxiliary ledgers that are adjusted to the account to be recorded. Check out some types of auxiliary ledgers below.

The first type is the big book of debt assistants which records the details of transactions related to business debt, namely money that is still obligatory to be paid to other parties.

In this auxiliary ledger, each party has a separate account, which records all credit purchase transactions, payments made, and balances that still have to be paid to the supplier.

The big book of debt assistants functions in helping companies to monitor debts to each supplier individually. This book is used to find out how much money is still to be paid and when the payment is due, so obligations will be better managed.

The big book of receivables noted the details of transactions related to business receivables, namely money that still has to be obtained from customers.

Each customer has a separate account in this auxiliary ledger, and records all credit sales transactions, payments received, and balances that the customer still has to pay.

The big book of receivables is useful in helping companies to monitor receivables from each customer individually.

So that the company can see who hasn't paid and how much it still has to get, so that it can manage cash flow better.

The supply auxiliary Book serves to record details of transactions related to inventory, whether it's raw materials, goods in the process, or finished goods.

Each type of inventory has a separate account in this auxiliary ledger, which records all purchase transactions, production, sales, and inventory adjustments.

The function of the supply aide ledger helps the company in monitoring the number and value of inventory in detail.

This book has an important function to find out how much supplies are available, how much has been sold, and how much remains to be produced or purchased.

This auxiliary Book records details of transactions related to fixed company assets, such as buildings, vehicles, machinery, and equipment.

Each asset still has a separate account in this auxiliary ledger, which records all purchases, sales, depreciations, and adjustments to the value of the asset.

The big book of asset assistants continues to help the company to monitor the value and condition of fixed assets in detail. This is of course important to know the economic age of assets, the cost of depreciation, and the value of fixed asset books.

Such is the review of the supporting ledger and its types. Hopefully useful. Visit VOI.id to get other interesting information.