What are Control Accounts?

Not all the transactions done in a business are in cash. Now days, businesses do a lot more transactions in credit and thus there is a long list of debtors and creditors. Since the bulk of entries are made in the accounts of debtors and creditors, these two classes of accounts are taken out of the General Ledger and put in a subsidiary ledger.

Subsidiary ledgers include

Sales Ledger: Which contains all debtors accounts

Purchases Ledger: contains all creditors’ accounts.

This is where control account comes in…

Control account is a summary of all the accounts in the subsidiary ledgers.

The summary of all accounts in the Sales ledger make up the Debtors control account and the summary of all accounts in the Purchase Ledger is known as the Creditors control account.

Read more about how to prepare Control Accounts at www.dineshbakshi.com

dineshbakshi.com has recently been updated with revision notes on Incomplete records. These notes cover the following learning objectives:

• prepare opening and closing statements of affairs;
• calculate net profit or loss from changes in capital over time;
• calculate sales, purchases, gross profit, debtors (trade receivables) and creditors (trade payables) and other figures from incomplete information;
• prepare income statements (trading and profit and loss accounts) and balance sheets;
• make adjustments to financial statements (final accounts)
• apply the techniques of mark-up, margin and stock (inventory) turnover to arrive at missing figures.

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dineshbakshi.com presents compact, to the point revision/study notes for IGCSE Partnership.

click here to check out the study/revision notes

Soon this section will be updated with multiple choice questions also. Keep watching!!

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Test your knowledge about accounting concepts now available on dineshbakshi.com

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Keep checking this blog regularly as more worksheets and structured questions on IGCSE and GCSE accounting are on your way!!

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This video throws light on all the ratios which are important for IGCSE, A Level Accounting. Quite concise and to the point, its a wonderful video for revision.

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