STARTER

CHAPTER – 14
Control ACCOUNT
• EXECUTE THE ITEMS TO BE POSTED IN PURCHASES
AND SALES LEDGER CONTROL ACCOUNT

• PREPARE PURCHASES AND SALES LEDGER

CONTROL ACCOUNT
MEANING OF CONTROL
ACCOUNT
MEANING OF CONTROL ACCOUNT:
Control accounts are also known as total accounts. If balance and the error cannot
be readily located. It is necessary to check all the accounting records. This can
take considerable account of time.
The checking process can be speeded up, if a control account for sales ledger
(which contains account of debtors) and a control account for the purchases
ledger (which contains a account of creditors) have been prepared.
1. They can assist in locating errors when the trial balance fails to match.
2. They are the proof of arithmetical accuracy of the ledgers they
control.
3. Provides a checking mechanism to detect errors and fraud at an early
stage.
4. Removes bulky details from the general ledger.
5. Drafts financial statement can be prepared quickly.
 G E R
L ESL ED
D S A T
E S AN O U N
C H A S L A C C
PU R N TR O
CO
• PURCHASES LEDGER CONTROL ACCOUNT:

The purchase ledger control account, or trade

creditor control account, is part of the balance sheet
and shows at any given time how much you owe to
your suppliers. All of the individual transactions
posted to your supplier ledger are included in
this account, so any invoices, credit notes and
payments are recorded.
 SALES LEDGER CONTROL
ACCOUNT

This is also referred to as trade

receivable account. These accounts
resembles the accounts of a debtor,
but instead of containing
transactions concerned with just
one person or business it contains
transactions related to all debtors.
 FORMAT OF PURCHASES LEDGER CONTROL ACCOUNT

DATE DETAILS $ DATE DETAILS $

Balance b/d XX Balance b/d XX
Purchases return XX Purchases XX
Cash XX Interest charged XX
Bank XX Bank/ cash (refund) XX
Discount received XX
Balance c/d XX
XXX XXX
Balance b/d XX
 FORMAT OF SALES LEDGER CONTROL ACCOUNT
DATE DETAILS $ DATE DETAILS $
Balance b/d XX Sales return XX
Sales XX Cash XX
Bank (dishonoured XX Bank XX
cheque)
Bank (cash refund) XX Discount allowed XX
Interest charged XX Bad debts XX
Balance c/d XX
XXX XXX
Balance b/d XX
PLENARY:
WRAP UP BY LEARNERS

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