A control account is a summary-level account in the general ledger. This account contains aggregated totals for transactions that are individually stored in subsidiary-level ledger accounts. The ending balance in a control account should match the ending total for the related subsidiary ledger.
How do you create a control account?
Create a Control account
- On the ribbon, click Account | Trial Balance.
- In the Trial Balance, click the Report worksheet tab, then click New.
- In the Name column of the new line, enter a description for the Control account.
- In the Type column, select a statement type from the drop-down menu.
What is a control account example?
In accounting, the controlling account (also known as an adjustment or control account) is an account in the general ledger for which a corresponding subsidiary ledger has been created. For example, “accounts receivable” is the controlling account for the accounts receivable subsidiary ledger.
What is the purpose of a control account?
A control account is a summary account in the general ledger. The details that support the balance in the summary account are contained in a subsidiary ledger—a ledger outside of the general ledger. The purpose of the control account is to keep the general ledger free of details, yet have the correct balance for the financial statements.
What is the purpose of a purchase ledger control account?
What is the Purchase Ledger Control Account? 1 Purpose of a control account. A control account exists for both creditors and debtors and is used to ensure that there are no errors in the ledgers (that any sub-ledgers 2 Purchase ledger control accounts in accounting. 3 Control accounts in accounting software. …
How are discounts allowed / received in a control account?
Discounts allowed/received in control accounts are the total of all the discounts in the individual accounts of suppliers and customers. returned. Therefore, sales and purchases returned from individual customers’ and suppliers’ accounts are totalled and deducted from the control accounts. . Anwar against purchases of juicer machines
How are accounts receivable recorded in a control account?
A company can have hundreds or thousands of customers with current accounts receivable balances. All of these balances are recorded in separate A/R subsidiary accounts. The total of all of these accounts is carried forward into the A/R control account, which appears in the general ledger and the financial statements.
