Section 7
Principles of Accounts
Control Accounts
What are control accounts?
Control accounts check the accuracy of the purchases and sales ledgers. They are able to do this
by combing similar items in the Purchases and Sales ledger. For example combing/adding all the
opening balances in the sales ledger or by adding all the money paid to you by debtors.
There are two types of Control Accounts:
1) Sales Ledger Control/Debtors Control
2) Purchase Ledger Control/Creditors Control
If the control accounts balance at the end of the period, then it means that there was no error
made in the purchases or sales ledgers.
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Solutions
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