Control Account


Welcome to class! 

In today’s class, we will be talking about the control account. Enjoy the class!

Control Account

Control Account |

A control account is the extraction of trial balance from individual ledger account of a large organization. Generally speaking, large organizations prepare different types of ledger accounts, but the error might occur when preparing these ledgers. To locate the error easily individual trial balance need to be opened for each ledger account, anyone that fails to agree indicates that there are errors. A control account is an easy way to locate errors from the ledger account. A control account is also called self-balancing ledge.


  1. It helps in locating errors
  2. It saves time
  3. It can be used to detect missing figures
  4. Fraud becomes difficult when control accounts are prepared
  5. It is used to check the accuracy of balance of the ledgers
  6. The total debtors and creditors can be easily calculated.
Division of control accounts

Basically, control account is divided into two: Sales Ledger Control Account and Purchases Ledger Control Accounts.

  1. Sales Ledger Control Account: This account recorded all account debtors control account.
  2. Purchases Ledger Control Account: This account recorded all account of the creditor. It is also called Total Creditors Control account.


  1. What is a control account?
  2. List four advantages of control account.


Sales Ledger Control Account

                                                   N                                                             N

1990 Jan       Balance b/f                X       1990 Jan. Cash from customers         X

Credits sales                X                          Cheque from customers    X

Debit note issued      X                           Returns inward                      X

Interest charged      X                            Bad debts                               X

Dishonour cheque    X                          Discount allowed                 X

Discount disallowed  X                         Credit notes issued              X

Carriage outwards    X                      Bills Receivable              X

Set offs                         X

Balance c/d                          X

X                                                                              X

Purchase Ledger Control Account

                                                     N                                                           N

1990 Jan.   Cash to supplier          X                 1990 Jan.  Balance b/f              X

Cheque to suppliers    X                               Credit purchases        X

Returns outwards       X        Discount received withdrawn received X

Credit notes received  X                                  Cash refunds             X

Discounts received      X

Set offs                           X

Bills payable                 X

Balance  c/d               X                                                                              X

 XX                                                                            XX


Note: The closing balance of sale ledger control account represents debtors which will appear in the balance sheet under current assets. While the closing balance of purchase ledger control account represents creditors which will appear in balance under current liability.

  1. List seven types of errors a trial balance will not reveal
  2. Explain the term apportionment in departmental accounts
  3. List six uses of control account
  4. Explain the components of prime cost
  5. List five items found in the total creditors’ control account


In our next class, we will be talking more about the Control Account.  We hope you enjoyed the class.

Should you have any further question, feel free to ask in the comment section below and trust us to respond as soon as possible.

Get more class notes, videos, homework help, exam practice on Android [DOWNLOAD]

Get more class notes, videos, homework help, exam practice on iPhone [DOWNLOAD]

Leave a Reply

Your email address will not be published. Required fields are marked *

Don`t copy text!