What are Sales and Purchase Ledger Control Accounts?

Sales and Purchase Ledger Control Account

Control accounts are the summarized form of their related subledgers. They are shown in the general ledger and act as a control to check if the total in the general ledger is in sync with the total of its associated subledgers.

Sales Ledger Control Account (SLCA)

Also known as the “Trade debtors control A/C”, it shows the total trade debtors of a company at a given time. In other words, the sales ledger control account, shows the total of the amount owed to a business by its customers at a particular point of time, i.e. the total of Accounts Receivables.

Sales ledger control account is a part of a balance sheet and a short-term asset.

Example

Let’s assume that on December 31, 2013, the total debtors in the general ledger are valued at 1,00,000.

 Type Debtors Amount
Debtor 1Oriental Pvt Ltd.
25,000
Debtor 2Axel Pvt Ltd.40,000
Debtor 3Sun Pvt Ltd.35,000
Total DebtorsSales Ledger Control A/C1,00,000

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Purchase Ledger Control Account (PLCA)

Also known as the “Trade creditors control A/C”, it shows the total trade creditors of a company at a given time. In other words, it shows how much in total a business owes to its suppliers at a particular point of time, i.e. the total of Accounts Payable.

Purchase ledger control account is a part of a balance sheet and a short-term liability.

Example

Let’s assume that on December 31, 2013, the total creditors in the general ledger are valued at 1,00,000.

TypeCreditorsAmount
Creditor 1Foxtrot Pvt Ltd.30,000
Creditor 2Ingenious Corp.40,000
Creditor 3Rent Free Pvt Ltd.30,000
Total CreditorsPurchase Ledger Control A/C1,00,000

 

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