Chapter 1: Control Accounts & Subsidiary Ledgers

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Accounting

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4 Terms

1
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Debtors Control Account

  • Replaces all the individual AR accounts that have been removed from the General Ledger.

  • Contains the total of all transactions affecting all AR.

2
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Debtors’ Subsidiary Ledger

  • A separate ledger containing all the individual AR accounts that have been removed from the General Ledger.

3
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Advantages of CA & SL

  1. To summarise unnecessarily detailed information in the General Ledger.

  2. To provide concise summary of Debtors and Creditors.

  3. To facilitate preparation of Trial Balance and financial statements.

4
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Balance in the General Ledger = Sum of individual balances in Subsidiary Ledger

True