Controlling account

In accounting, the controlling account (also known as an adjustment or control account) is an account in the general ledger for which a corresponding subsidiary ledger has been created. The subsidiary ledger allows for tracking transactions within the controlling account in more detail. Individual transactions are posted both to the controlling account and the corresponding subsidiary ledger, and the totals for both are compared when preparing a trial balance to ensure accuracy. In accounting, the controlling account (also known as an adjustment or control account) is an account in the general ledger for which a corresponding subsidiary ledger has been created. The subsidiary ledger allows for tracking transactions within the controlling account in more detail. Individual transactions are posted both to the controlling account and the corresponding subsidiary ledger, and the totals for both are compared when preparing a trial balance to ensure accuracy. For example, 'accounts receivable' is the controlling account for the accounts receivable subsidiary ledger. In this subsidiary ledger, each credit customer has his own account with its own balance. Thus, while the 'accounts receivable balance' can report how much the company is owed, the accounts receivable subsidiary ledger can report how much is owed from each credit customer. Other examples of controlling accounts and their subsidiary ledgers include 'accounts payable' (accounts payable subsidiary ledger) and 'equipment' (equipment subsidiary ledger).