All 25 Control Accounts questions
More in Control Accounts
Why are control accounts prepared by someone other than the ledger clerk? What entries appear in the sales ledger control account? What entries appear in the purchases ledger control account? How does a control account help detect errors? Why is a control account a form of internal control? What is the effect of a discount allowed on the control accounts? How is a bad debt written off reflected in the sales ledger control account? How do dishonoured cheques appear in the sales ledger control account? What is teeming and lading and how do control accounts help detect it? How is refund to a customer shown in the sales ledger control account?
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Bookkeeping › Control Accounts

What is a control account reconciliation?

Intermediate

Answer

A control account reconciliation compares the control account balance with the total of the list of balances from the subsidiary ledger. Differences are identified and split between errors in the control account (adjust the control account) and errors in the list of balances (adjust the list). After correction, the two should agree.
Control account 6,650 vs list 6,500:
  Adjust control for a 100 discount omitted;
  Adjust list for a 50 miscast -> both agree at 6,550.
Real-world example The bookkeeper reconciles the payables control account to the creditors list each month before reporting.

Common follow-ups: How do you split errors between the two sides? | What is the goal of the reconciliation?

Correcting Errors Sales & Purchase Ledgers Control Accounts
All 25 Control Accounts questions