Solution 5.3

The main role of control accounts is as a check on the accuracy of the accounting records in relations to the sales and purchases ledgers. For example the accounting system can produce a sales ledger control account or total debtors account where the closing balance on this account should equal the total of the individual debtor accounts balances. Thus the control account acts as a check on the accuracy of the sales ledger accounts. This is also applied to the purchases ledger whereby the accounting system produces a purchases ledger control account or total trade creditors account. The balance on this account should equal the total of the individual balances in the purchases ledger.