Hodges Ltd Uses a Subsidiary Ledger and Control Account System

Multiple Choice

Hodges Ltd uses a subsidiary ledger and control account system for its accounts receivable. At the end of the accounting period a list of customers' accounts and balances owing is prepared from the subsidiary ledger. The purpose of this customer list is to:

A) determine the amount that should be posted to the accounts receivable control account.
B) establish whether the total debits and total credits in the subsidiary ledger are equal.
C) provide information necessary for the completion of the trial balance.
D) prove that the subsidiary ledger agrees with the control account.