Control Accounts Worked Examples
Control Accounts Worked Examples
The Control Account at any time should be equal to the total of the subsidiary
accounts. Any differences in the two totals should be explained, and where
the differences are due to errors, these must be corrected. Corrections will be
to either the control account or the subsidiary accounts.
A Sales Ledger Control Account will typically be used to record the following
transactions:
Date £ Date £
Balance b/d X Sales Rtns X
Sales X Contra Entries X
Returned Cheques X Disc Allowed X
Interest to customers X Cash Rec’d X
Bad Debts X
Balance c/d X
X X
Balance b/d X
A Purchase Ledger Control Account will typically be used to record the
following transactions:
Date £ Date £
Purchase Rtns X Balance b/d X
Disc Rec’d X Purchases X
Cash Paid X
Contra Entries X
Balance c/d X
.
X X
Balance b/d X
1. Compare the balance on the sales ledger control account with the sum
of the balances on the individual customer accounts. If there is a
difference one or more errors or omissions has occurred.
2. Identify the errors or omissions and decide whether the error has
occurred in the control account or in the individual customers
subsidiary account.
3. Once the error has been identified, the appropriate correction should
be made.