Final answer:
The correct answer is option b. The general ledger does not maintain details of subaccounts. Subsidiary ledgers and general ledger control accounts help ensure accuracy and control of financial records.
Step-by-step explanation:
The correct answer is b. the general ledger maintains details of subaccounts. In accounting, subsidiary ledgers are used to record detailed transactions for a specific type of account, such as accounts receivable or accounts payable. The general ledger, on the other hand, summarizes all the financial transactions for the entire organization. Therefore, the general ledger does not maintain details of subaccounts as stated in option b.
For example, a company may have a subsidiary ledger for accounts receivable, which would include individual customer accounts and their transaction details. The total balances in the subsidiary ledger for accounts receivable should always equal the balance in the accounts receivable general ledger control account. This ensures accuracy and control of the financial records.
Reconciling a subsidiary ledger to the general ledger can help to detect errors or fraud, as stated in option d. It allows for comparison and identification of discrepancies between the detailed transactions in the subsidiary ledger and the summarized information in the general ledger. Separating the subsidiary ledger from the general ledger, as mentioned in option c, enhances control by providing a clear and organized way to track and manage specific account balances.