Definition:

An adjunct account is a subsidiary ledger account that provides additional details or information related to a main general ledger account. It’s often used to track specific transactions or categories within a broader account.

Common examples of adjunct accounts:

  • Customer ledger: Tracks individual customer accounts and balances.
  • Vendor ledger: Tracks individual vendor accounts and balances.
  • Fixed asset subsidiary ledger: Tracks individual fixed assets, their cost, accumulated depreciation, and net book value.
  • Inventory subsidiary ledger: Tracks individual inventory items, their quantity, and cost.

Why are adjunct accounts important?

  • Detailed information: Adjunct accounts provide detailed information about specific transactions or categories within a main account.
  • Efficiency: They can improve efficiency by allowing for easier tracking and analysis of specific transactions.
  • Accuracy: Adjunct accounts can help ensure the accuracy of financial records.

In essence, adjunct accounts are a valuable tool for providing additional detail and information about specific transactions or categories within a general ledger account.