What is Inventory Control Ledger Account

Inventory Control Ledger Account Meaning

Inventory Control Ledger Account is prepared to control the records of all the subsidiary inventory ledger accounts at one place. For Example, each product inventory ledger accounts are recorded separately and then the sum of these products’s are sum up in one inventory control ledger account. The sum of all of the inventory subsidiary ledger accounts’ balances is always equal to the closing balance of inventory control ledger account / stock control ledger account and hence the inventory control ledger account is reconciled with the inventory subsidiary ledger accounts for the accounting period.

Companies, which use Perpetual Inventory System, prepare inventory control ledger account to reconcile it with the inventory subsidiary ledger accounts on daily basis while under Periodic Inventory System, it is reconciled at the end of the accounting period.