What is an Accounts Receivable Ledger?

Accounts Receivable Ledger

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Accounts Receivable Ledger

An Accounts Receivable Ledger, also known as a subsidiary ledger or customers’ ledger, is a detailed record that tracks individual customer transactions related to accounts receivable. It is a separate ledger within the company’s accounting system used to manage and organize the outstanding balances owed by customers who have purchased goods or services on credit.

The Accounts Receivable Ledger maintains information for each customer, such as their name, address, credit terms, and a record of all transactions, including sales, payments, credit memos, and adjustments. It helps businesses monitor the amounts due from each customer, track payment histories, and identify overdue accounts for collection efforts.

The total balance of all individual customer accounts in the Accounts Receivable Ledger should equal the balance of the accounts receivable account in the general ledger. This process is called reconciliation and is essential to ensure the accuracy and completeness of the financial records.

In summary, an Accounts Receivable Ledger serves as a tool for managing and organizing customer-related transactions and balances, helping businesses monitor their receivables, improve cash flow, and maintain accurate financial records.

Example of an Accounts Receivable Ledger

Below is a simplified example of an Accounts Receivable Ledger for a fictional company called “BestPrint,” which sells printing services to clients on credit. The ledger shows individual customer accounts and their respective transactions.

Accounts Receivable Ledger:

Customer A:

Customer B:

  • Opening balance: $1,500
  • Invoice #102: $2,000
  • Payment received: -$1,500
  • Invoice #111: $1,200
  • Closing balance: $3,200

Customer C:

  • Opening balance: $0
  • Invoice #103: $2,500
  • Payment received: -$1,000
  • Invoice #112: $1,000
  • Closing balance: $2,500


  • Opening balance: $3,500
  • Total Invoices: $7,500
  • Total Payments: -$3,500
  • Total Credit Memos: -$200
  • Closing balance: $7,800

In this example, BestPrint’s Accounts Receivable Ledger tracks each customer’s transactions, including opening balances, invoices, payments received, and credit memos. The closing balance for each customer represents the outstanding amount owed to BestPrint.

By maintaining an Accounts Receivable Ledger, BestPrint can efficiently manage customer balances, monitor payment histories, and identify overdue accounts for collection efforts. Additionally, the total closing balance of $7,800 should match the accounts receivable balance in BestPrint’s general ledger, ensuring accurate financial records.

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