Control Accounts

Functions of Control Accounts

• Provide a summary of the total of debtors and creditors
  
• Cross-check to avoid fraud.
  
• Locate errors

Sales Ledger Control Account

• Also known as the 'Trade Debtors control account'
  
• Shows how much your customers owe at any given time
  
• Must be reconciled each month to ensure it reflects the same balance as your Aged Debtors report
  
• Any difference must should be investigated

Purchase Ledger control account

• Also known as the Total creditor control account
  
• Shows how much you owe to your suppliers at any given time
  
• Must be reconciled each month to ensure it reflects the same balance as your Aged Creditor report
  
• Any difference must should be investigated