3 Control Accounts Questions

by Sameera

Mauritius sunset

Mauritius sunset

Q: (1) Explain the ways in which control accounts can be of use to the management of a business.

(2) outline the usefulness of these accounts.

(3) state why a sales ledger control account may have both a debit and a credit closing balance.

(1) Management uses control accounts to reduce input errors.

(2) Same as above. For example, the balance in the debtor control account should match the total of all individual debtor accounts in the debtors ledger. This lack of discrepancy between the two indicates that there are probably no errors in these accounts.

(3) By "sales ledger control account" I assume you mean a creditors control account. A debit and credit balance is possible if one of the guys you normally buy from and owe (a supplier - credit balance) also bought something from you and owes you (debit balance).

Click here to post comments

Return to Ask a Question About This Lesson!.

Enjoying this Website?
Help Support it with a Donation


Advertise on Accounting-Basics-for-Students.com

More Info

All the lessons on this site and much, much more...

Accounting Basics: Complete Guide

Available Now On

Get Your Degree!

Find schools and get information on the program that’s right for you.

Powered by

Subscribe to
The Student Accountant newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you The Student Accountant.