---
title: "Subsidiary account"
description: "What a subsidiary or postable account is, how it sits under a ledger account in a coded chart, why entries are posted at this level and how to name and number it."
canonical: https://ledgeriano.com/glossary/subsidiary-account
language: en
publisher: "Ledgeriano"
updated: 2026-11-06
---

# Subsidiary account

> What a subsidiary or postable account is, how it sits under a ledger account in a coded chart, why entries are posted at this level and how to name and number it.

A subsidiary account is the third level of a coded chart of accounts, such as 1101 Cash on hand or 1301 Trade receivables, and is usually the level where journal entries are posted. Its four-digit code begins with the code of the ledger account it belongs to, so balances roll up automatically to the statements.

Postable accounts should be specific enough that a reviewer knows what is inside without opening the ledger: "Bank: main operating account" rather than "Bank 1". At the same time, they should not multiply for each customer or project; those belong in dimensions on the entry line.

Flag accounts that need extra data. A receivables account should require a [party](https://ledgeriano.com/glossary/party) on every line, a cost account may require a [cost center](https://ledgeriano.com/glossary/cost-center). Enforcing it at posting saves hours of clean-up later.

When an account is no longer used, deactivate it rather than deleting it, so historical entries and comparisons stay intact.

## Example: postable accounts under a ledger account

11 Cash and bank balances has these postable accounts.

| Code | Account |
| --- | --- |
| 1101 | Cash on hand |
| 1102 | Petty cash |
| 1103 | Bank: main current account |
| 1106 | Bank: foreign currency account |

### Can a subsidiary account have children?

In a four-level design, detail (dimensions such as parties or projects) sits below it, but not further accounts. Some charts add a fourth account level for large organizations.

### Should every customer have its own account?

Usually not. Use one receivables account and tag lines with the customer as a party, then report balances per party.

Guide: https://ledgeriano.com/guides/chart-of-accounts