|credit of picture to Turbo Cash|
Controlling account means the account which is used to control the different accounts. For example, we have 10000 customers, you can make one debtor control account. All your customer's balance will go to this account. After sending balance to this debtor control account will show show the total balance of debtors. Like this, you can open stock control account, creditor control account. These type of accounts are not opened in India. In India, we can make subsidiary books like sales book and purchase book and also open ledger account of each debtor. We also open sales account. All things are sufficient for controlling the record of credit sales.
Importance of Controlling Account
1. Main aim of opening controlling ledger account is to write the summary of general ledger. These summary will be helpful for making trial balance.
2. With opening control accounting, we can crosscheck of general ledger accounts. For example, total of individual debtor account's total will be equal to the debtor control account's total.
Related : Self-balancing