Debitoor Dictionary

Accounting terms explained in a simple way

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What is the Sales Ledger Control Account?

Definition: The balance on the Sales Ledger control account also referred to as Trade Debtors control account should equal the balances on the individual customer accounts.

The Sales ledger control account or Trade Debtors control account is part of the balance sheet and shows at any given time how much your customers owe you and your company. All the individual transactions posted to your customer ledger cards so invoices, credit notes and receipts are reflected in this account.

This account should be reconciled each month end making sure it reflects the same balance at the same time as your Aged Debtor Report which shows the individual balances outstanding per customer. If there is a difference then this should be investigated.