Limitations

• • Control accounts do not prove that each individual account balance is correct.
• • They will not show:
  • If a transaction has been completely left out of the accounting system (error of omission)
  • If the wrong amount was entered in the accounting system for a transaction (error of original entry)
  • If a transaction was entered in the wrong account in the receivables ledger or payables ledger (error of commission)
• • They also do not show where in the receivables or payables ledger the error has taken place.