Control account
What is a control account?
A control account is a single account in the general ledger that holds a total.
The sales ledger control account holds the total owed by all the credit customers. The purchases ledger control account holds the total owed to all the credit suppliers.
Its balance should equal all the balances in that ledger added together.
Example
A sales ledger control account starts the month with a balance of £400.00. Credit sales are £1,500.00, money received is £1,100.00 and credit notes are £50.00. The closing balance is £750.00.
Why it matters
If the control account and the list of balances disagree, something was posted wrongly. A reconciliation finds it.
Practise it
Module, 2 rooms, PremiumControl accounts
See the first roomThe sales ledger control account
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].