Plant ledger definition
/What is a Plant Ledger?
A plant ledger is a subsidiary ledger in which fixed asset transactions are recorded. This ledger includes detailed information about each fixed asset, including the acquisition date, asset description, asset location, depreciation, disposition proceeds, purchase cost, and any subsequent capitalized additions to the asset.
The ending book balances for all fixed assets listed in the plant ledger, when aggregated, should match the summary-level balance appearing in the general ledger. A person investigating fixed asset information would drill down from the summary amount in the general ledger to the detailed information in the plant ledger.
Advantages of Having a Plant Ledger
There are several advantages to having a plant ledger, including the following items:
Asset location record. The ledger itemizes where all assets are located, and so is useful as a source document when conducting fixed asset counts.
Auditor source document. An organization’s outside auditors will insist on seeing a plant ledger, since this is the most efficient way for them to trace the existence of the firm’s fixed assets.
Detailed record. This is the detailed record of fixed assets, and so is an essential source of information about what may be the largest asset class in the organization.