Chapter 12
Control Systems:
Control Accounts
Control Systems:
Control Accounts
Accountants use two general ledger
accounts to help ensure the accuracy of the
sales ledger and the purchases ledger.
These two accounts are the:
Debtors' control account (also called the
Sales ledger control account) and
Creditors' control account (also called the
Purchases ledger control account)
Debtors' Control Account
(Sales Ledger Control Account)
The debtors' control account is compiled from the
general journal, cash book and the totals in the
sales and sales returns journals.
The balances in this control account should always
be equal to the sum of all the balances in the
sales ledger. If there is inequality, the accountant
will need to find the source of the difference and
have this corrected.
Debtors' control account (Sales ledger control
account)
Creditors' Control Account
(Purchases Ledger Control Account)
The creditors' control account is compiled from the
general journal, cash book and the totals in the
purchases and purchases returns journals.
The balances in this control account should always
be equal to the sum of all the balances in the
purchases ledger.
Creditors' Control Account
(Purchases Ledger Control Account)