4.3 - Control Accounts

Question 1

Sales Ledger Control Account

Answer 1

Shows the total amount owed by credit customers

Question 2

Purchases Ledger Control Account

Answer 2

Shows the total amount owed to credit suppliers

Question 3

(HAS)

Benefits of Control Accounts

Answer 3

• Helps prevent fraud
• Arithmetic errors can be identified and corrected
• Saves time checking for errors

Question 4

(IS)

Limitations of Control Accounts

Answer 4

• If errors are made, they will not show which account the errors has been made
• Some errors are not revealed by a control account