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When a business has a large number of plant assets to keep track of, the use of a subsidiary ledger is recommended. Detailed information on each plant asset is maintained in the subsidiary ledger. All plant assets can be specifically identified by an assigned number. The first part of the number corresponds to the general ledger account, while the second part of the number represents the identification assigned to the asset. Periodically, it is advisable to compare balances of the subsidiary ledger with the controlling accounts in the general ledger. Subsidiary ledgers are very useful in determining depreciation expenses, filing tax and insurance forms, as well as recording the disposal of plant assets.
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