What is Control Ledger Account

A Control Ledger Account represent the total of balances of relevant Subsidiary Ledger Accounts such as Purchases Control Ledger Account, Sales Control Ledger Account, Accounts Receivable Control Ledger Account, Accounts Payable Control Ledger Account, etc.

The closing balance of a control ledger account is always equal to the total of subledger accounts balances and in this way, we reconcile ledger control account with the subsidiary ledger accounts for the accounting cycle.

For example, sales made to various customers i.e., Mr. A, Mr. b, Mr. C, etc are firstly transferred to respective recorded separately in sales subsidiary ledger accounts related to customers Mr. A, Mr. b, etc. and then total of balances of sales subsidiary ledger accounts are finally transferred to Sales Control Ledger Account. The Closing balance of Sales Control Ledger Account is always equal to total of balances of all of the sales subledgers accounts.