How to prepare control accounts?

Question

How to prepare control accounts?

Answer 1

The general ledger account that summarizes a subsidiary ledger's account balances is called a control account or master account. For example, an accounts receivable subsidiary ledger (customers' subsidiary ledger) includes a separate account for each customer who makes credit purchases. The combined balance of every account in this subsidiary ledger equals the balance of accounts receivable in the general ledger. Posting a debit or credit to a subsidiary ledger account and also to a general ledger control account does not violate the rule that total debit and credit entries must balance because subsidiary ledger accounts are not part of the general ledger; they are supplemental accounts that provide the detail to support the balance in a control account.

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Answer 2

Hi

I suppose yuo are talking about book-keeping ?

First you have subledger and the total of your subledger will be posted to the general ledger in the respective contrrol accouts like debtors or creditors control accounts