Control Accounts in Accounting

These flashcards cover key terms and concepts related to control accounts in accounting.

Control Account

A summary of all balances and transactions for trade receivables or trade payables.

Sales Ledger Control Account

Summarises all transactions related to trade receivables.

Purchases Ledger Control Account

Summarises all transactions related to trade payables.

Books of Prime Entry

Books used to record transactions initially before they are posted to the ledger.

Closing Balance

The final amount in an account at the end of a period, compared to related ledger accounts.

Errors of Commission

Errors that occur when the correct amount is recorded, but in the wrong account.

Errors of Omission

Errors that occur when a transaction is not recorded at all.

Contra Entry

An entry made to offset a balance without any exchange of money.

Sales Ledger

A record of all amounts owed by credit customers.

Purchases Ledger

A record of all amounts owed to credit suppliers.

Debit Balance

An amount that indicates that a customer owes money.

Credit Balance

An amount that indicates that a supplier owes money to the business.

Irrecoverable Debts

Debts that are considered uncollectible and are written off.