Sales and purchases ledger control accounts, the use of the journal to correct errors, and the suspense account.
Control accounts
A control account summarises the total of many individual ledger accounts so their accuracy can be checked. The sales ledger control account (total trade receivables) and purchases ledger control account (total trade payables) act as a check on the personal ledgers.
| Dr | Sales ledger control account | Cr | |
|---|---|---|---|
| Balance b/d | 5,000 | Bank (received) | 18,000 |
| Credit sales | 20,000 | Discount allowed | 600 |
| Dishonoured cheque | 400 | Sales returns | 1,200 |
| Irrecoverable debts | 300 | ||
| Balance c/d | 5,300 | ||
| 25,400 | 25,400 | ||
| Balance b/d | 5,300 |
The control account closing balance should equal the total of the individual receivable balances.
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