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Bookkeeping › Control Accounts

What is the purpose of control accounts?

Beginner

Answer

Control accounts provide a check on the accuracy of the subsidiary ledgers (the total should agree), allow the trial balance to be prepared without listing every personal account, help locate errors by narrowing where they are, and support internal control by separating the person keeping the control account from those keeping the personal ledgers.
Real-world example If the debtors list doesn't equal the control account, the bookkeeper knows an error exists to find.

Common follow-ups: How do control accounts help find errors? | How do they aid the trial balance?