• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App

Kindly explain in detail control accounts and personal ledgers? Impact of control accounts on financial statements?


Thank you in advance. With reference to my question; I need to understand the topic Control Accounts and Personal Ledger and their treatment and impact on Financial Statements.

asked Nov 2 in General Accounting Discussion by Finance Professional Level 2 Member (3,680 points)

1 Answer

+1 vote
 
Best answer
With reference to your question above, control account is the sum of various generals  in other words it is summary of class of transactions ; normally control account is used for accounts receivable, accounts payable and other currents assets and current liabilities accounts. Personal ledger is the ledger where transaction is only recorded pertaining to same account; general ledger is opened in chart of accounts, for every account.  Net amount (Debit/Credit) goes to control account.
The example of general account is
1)    Staff salaries expense
2)    Receivable from party A
3)    Receivable from part B
4)    Payable to part X
5)    Payable to party Y
6)    Rents rates
7)    Utilities expenses. E.t.c

The treatment of the control account in financial statement is to add or less total amount of control account in particular line of item in balance sheet.
answered Nov 2 by Maher Ali Level 2 Member (4,360 points)
selected Nov 2 by Finance Professional


...