Department of Commerce

TOPIC: CONTROL ACCOUNTS

Trade receivables or Sales Ledger Control Account: This account, also known as the
Sales Ledger Control Account, contains all detail of the trade receivables’ accounts in the
Sales Ledger, but in totals. One of the totals in the Sales ledger Control Account is total credit
sales which is the aggregate of all the sales entered in the trade receivable’s accounts. The
total sales shown in the Sales ledger Control Account is equal to the sum total of the individual
sales posted to the trade receivables’ accounts in the Sales Ledger.
Following is the layout of the Sales ledger control account:

Sales Ledger Control Account

$ $

Balance b/d (majority) xxx Balance b/d (minority) xxx

Credit Sales (total of sales journal) xxx Sales returns (total of sales returns xxx
journal)
Refunds to credit customers (from xxx Cash/cheques received from credit xxx
cash book) customers (from cash book)
Dishonored cheques (from cash book) xxx Discount allowed (total of discount xxx
column from cash book)
Interest charged (from journal) xxx Bad Debts (from journal) xxx
Bad Debts recovered (from journal) xxx Cash from bad debts recovered (from xxx
cash book)
Balance c/d (total of credit balances in xxx Set off – purchase ledger (from journal) xxx
sales ledger)

Balances c/d (total of debit balances in xxx

sales ledger)
xxx xxx

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Trade payables or Purchases Ledger Control Account: The Trade payables Control
Account, also called the Purchases Ledger Control Account or Total Trade payables Account,
represents all the trade payables in the Purchases Ledger.

Purchase Ledger Control Account

$ $
Balance b/d (minority) xxx Balances b/d (majority) xxx
Purchase returns (total of purchase xxx Credit purchases (total of purchases xxx
returns journal) journal
Cash / cheques paid to suppliers (from xxx Refunds from suppliers (from cash xxx
cash book) book)
Discount received (total of discount xxx Interest charged by suppliers (from xxx
column from cash book) journal)
Set off – sales ledger (from journal) xxx Dishonored cheques (from cash book) xxx
Balance c/d (total of credit balances in xxx Balance c/d (total of debit balances in xxx
purchase ledger) purchase ledger)

xxx xxx

Points to remember:

• Do not enter cash sales, cash purchases and provision for doubtful debts in the
control accounts.

• ‘Contra’ / ‘Set off’ entries will always be credited in the sales ledger control account
and debited in the purchase ledger control account.

• There could be two opening balances at the beginning of the month/year take both
at their respective place as it is given.

• Do not deduct “debit balances” with the “credit balances” in the sales ledger or
purchase ledger control accounts.