Frequently Asked Question
What is a Control Account
What is a Control Account?
A control account is a summary account within a financial general ledger that collects the details of an account in a subsidiary ledger — general ledgers track all of the financial transactions within a company. The information managed in a subsidiary ledger is the detail supporting the information on the general ledger. Subsidiary ledgers are used to track a variety of items that collect on a general ledger, including accounts receivable, accounts payable, inventory, and revenue. In addition to transaction amounts, the subsidiary ledgers will often contain names, locations, descriptions, and dates. Each of the subsidiary ledger items naturally will have a control account on the general ledger.
2. Mention some of the Commonly Used Subsidiary Ledgers?
Some commonly used subsidiary ledgers are accounts receivable subsidiary ledger, accounts payable subsidiary ledger or creditors' subsidiary ledger, inventory subsidiary ledger, fixed assets or property or plant & equipment subsidiary ledger, projects subsidiary ledger, work in progress subsidiary ledger and cash receipts or payments subsidiary ledger.