Control Accounts Definition, Types & Example
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Control Accounts Definition, Types & Example
Learn what a control account is. Study the purposes and advantages of debtor, creditor, and stock control accounts, and discover an example of a control account.
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Control accounts are the “summary” entries in the general ledger that pull together the balances of a whole bunch of individual subsidiary ledgers. *How it works* - *General‑ledger entry:* e.g., Accounts Receivable Control. - *Subsidiary ledger:* every customer’s account (A, B, C…). - At period‑end you total the subsidiary balances and post that total to the control account. The two must match; any mismatch flags an error. *Typical control accounts* - Accounts Receivable ↔ Customer ledger - Acco
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Control accounts are the “summary” entries in the general ledger that pull together the balances of a whole bunch of individual subsidiary ledgers. *How it works* - *General‑ledger entry:* e.g., Accounts Receivable Control. - *Subsidiary ledger:* every customer’s account (A, B, C…). - At period‑end you total the subsidiary balances and post that total to the control account. The two must match; any mismatch flags an error. *Typical control accounts* - Accounts Receivable ↔ Customer ledger - Acco
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