Definition

1. Noun:
   • A summary account in a general ledger: A "control account" is an account in a general ledger that contains aggregated totals from a related group of subsidiary ledger accounts. Its balance should equal the sum of the individual balances in that subsidiary ledger.
   • A tool for verification and error detection: It is used to maintain control and verify the accuracy of the detailed entries recorded in subsidiary ledgers.

Usage Examples

• Noun:
  • The accounts receivable control account should reconcile with the total of all individual customer balances in the subsidiary ledger.
  • At the end of the month, the accountant prepared a schedule to ensure the control account matched the subsidiary ledger totals.

Advanced Usage

• "To reconcile a control account": The process of verifying that the balance in a control account equals the sum of the balances in its corresponding subsidiary ledger.
  • The bookkeeper spent the afternoon reconciling the accounts payable control account.

Variants and Related Words

• Subsidiary Ledger (n): A detailed ledger containing individual accounts that support the balance in a control account (e.g., an accounts receivable subsidiary ledger with a separate page for each customer).
• General Ledger (n): The primary accounting record containing all the financial statement accounts, including the control accounts.

Synonyms

• Summary account: An account that summarizes detailed transactions.
• Controlling account: An alternative term with the same meaning.

Related Phrases

• Control account balance: The total amount shown in the control account at a point in time.

  • The auditor checked the control account balance against the subsidiary ledger.

• Maintain a control account: To keep and update a summary account.

  • It is standard practice for large businesses to maintain a control account for payables.

Noun

1. an account that shows totals of amounts entered in a subsidiary ledger