Control accounts

• Control accounts are 'master accounts' which are a part of the verification process of the double-entry records. They control a number of ledger accounts
• A control account is used to record the totals of transactions passing through the ledger accounts. In this way, the balance of the control accounts will always be equal (unless an error has occured)
• Sales ledger control account (debits): Bal B/d, dishonoured cheques, interest charged to TR, credit sales
• Sales ledger control account (credit side): Cash/cheques received from trade receivables, cash discount allowed, sales returns, irrecoverable debts written off, set-off/contra entries, bal c/d
• Purchases ledger control account (debits): Cash/cheques paid to trade payables, cash discount received, purchase returns, set-off/contra entries, bal c/d
• Purchases ledger control account (credits): Bal b/d, credit purchases, interest charged by trade payables