What are Sales and Purchase Ledger Control Accounts?

Sales and Purchase Ledger Control Accounts

Control accounts are the summarized form of their related subledgers. They are shown in the general ledger and act as 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 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 1  Oriental Pvt Ltd.
 25,000
 Debtor 2  Axel Pvt Ltd.  40,000
 Debtor 3  Sun Pvt Ltd.  35,000
 Total Debtors  Sales Ledger Control A/C  1,00,000

 

 

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.

Type Creditors Amount
 Creditor 1  Foxtrot Pvt Ltd.  30,000
 Creditor 2  Ingenious Corp.  40,000
 Creditor 3  Rent Free Pvt Ltd.  30,000
 Total Creditors  Purchase Ledger Control A/C  1,00,000