A control account is an account in the nominal ledger in which a record is kept of the total value of a number of similar but individual items.
Control accounts are used chiefly for debtors and creditors.
A Debtors Control Account
A debtor’s control account is an account in which records are kept of transactions involving all debtors in total. The balance on the debtors control account at any time will be the total amount due to the business at that time from its debtors.
A Creditors Control Account
A creditor’s control account is an account in which records are kept of transactions involving all creditors in total, and the balance on this account at any time will be the total amount owed by the business at that time to its creditors.
Although control accounts are used mainly in accounting for debtors and creditors, they can also be kept for other items, such as stocks of goods, wages and salaries. The first important idea to remember, however, is that a control account is an account which keeps a total record for a collective item which in reality consists of many individual items.
A control account is an impersonal ledger account which will appear in the nominal ledger.