One Response to “sales ledger control accounts?”

  1. just_the_facts_ma'am says:

    All of these terms go back to the days when people kept manual books.

    Back then, you had a sales ledger and a purchases ledger. Separate physical books in which sales and purchase transactions were recorded. They had details for customers and suppliers.

    In the general ledger were sales and purchases control accounts – rather than re-post all of the detail from the sub-ledgers, summary totals would be posted to the G/L. They acted as a ‘control’ since someone else would do the G/L posting – so if the G/L was out of balance with the sub-ledger, they would know who screwed up (or stole money).

    Today, these terms have little significance – except in accounting classes and companies where they haven’t updated their accounting system for decades.

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