Control Account (Noun)
Meaning
An account that shows totals of amounts entered in a subsidiary ledger.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The accountant reconciled the control account to ensure it matched the amounts in the subsidiary ledger.
- A control account is used to summarize the balances of multiple subsidiary accounts in the general ledger.
- The payroll clerk updated the control account after each payroll run to reflect the total of all employee salaries.
- A discrepancy was discovered in the control account and the accountant spent hours reconciling the difference with the subsidiary ledger.
- The financial software program automatically updated the control account as new transactions were posted to the subsidiary ledger.