What are the point of control accounts in the general ledger. Are you not just duplicating and making it more complex then it really has to be.. or am i missing something??
Control accounts are central to the accounts. The main ones are S/L, P/L, bank and VAT. They are essential to making sure that invoices, payments, etc.. are processed properly.
Ok. Just seems like your duplicating it. Not only is it in the control account. it's in the purchase and sales account and in the subsidiary account for individuals account.
No i'm not a bookkeeper yet, thats why im trying to get my head round it all. ( Slowly sinking in.. lol.)
Without a Debtor Control account, how would you know if an invoice was paid or not? Or how much is owed at any time?
Traditionally many Asian countries do not use control accounts and because of this they often overpay (or underpay) on contracts! I see many businesses overpay invoices because they have not processed them properly using a control account.
Its why Double entry bookkeeping is so important
-- Edited by YLB-HO on Tuesday 31st of May 2011 11:42:08 AM
