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.
