What is Accounts Receivable Control Ledger Account

An Accounts Receivable Control Ledger Account or Accounts Receivable Master Ledger Account is used to show the final value of all of the Accounts Receivable Subsidiary Ledger Accounts for the accounting period.

For example, Mr. A, Mr. B, Mr. C, etc., are the customers of the Company XYZ to whom the company sold goods or services on credit or on account. At the end of the accounting cycle, all the balances of individuals accounts receivables ledger accounts (customers subledgers ledger accounts) are added and transferred to Accounts Receivable Control Ledger Account. The closing balance of that control account must be equal to the total of balances of all of the accounts receivable subledgers accounts.

Accounts Receivable Control Ledger Account is also known as Accounts Receivable General Ledger.