Control Account

What are Control Accounts

Control Accounts basically are the summary of transaction entered in different primary books.The control account are maintained from the  primary books in totality where the individual accounts are maintained from individual entry.

Control accounts is maintained as general Led memorandum record and updated on periodical bases . Concept of control account is more related to manual books of accounts and it has little use in computerized environment.

Advantages of Control Account

1.Preparation of Financial statement

Control accounts are really helpful to update the trial balance and preparation of financial statement. The information is readily available for the preparation of financial statement at any point of time.

2.Accuracy of Individual Account

The balance of control account must agree with the individual account. if there is any difference then the individual account must be checked for error.


3. Better control over Receivable and payable

The information is available about the receivable and payable account and therefore management can  manage the working capital in a better way.


4. Manageable Size of Trial Balance

Control account keep the trial balance with manageable size unlike the subsidiary ledger accounts which make the trial balance to large to manage.

Example of Control Account