O Level Accounting Chapter 5 Theory Control Account

Control accounts

Control accounts control many detailed individual accounts. There are the problems
associated with a large number of transactions in the ledger that control accounts seek to
resolve.

Purpose of Control Account

 Independent check on the sales and purchases ledger

 They may provide totals of debtors and creditors at any time
 They may help to locate the errors and act as a deterrent against fraud

Sales Ledger Control Account

Balance b/d X Balance b/d(if any) X

Credit Sales X Cash /Cheques Received X
Refund to Customers X Return Inwards X
Interest Charged X Discount Allowed X
Dishonored Cheques X Bad Debts X
Balance c/d(if any) X Set Off X
Balance c/d X
X X

Purchases Ledger Control Account

Cash/Cheques Paid X Balance b/d X

Return Outwards X Credit Purchases X
Discount Received X Refund from Supplies X
Set Off X Interest Charged X
Balance c/d X
X X

From the desk of Sir Zeeshan Malik Page 1