Account Receivable Control account | Concept & Format

Account Receivable Control account, or Sales ledger control account is an accounting term. Used for a collective account of all the debtors, where all the transactions of account receivables are recorded collectively. The Basic rules are as same as any other debtors account. Control account shows the accumulated debtors balance in a single account. In real world, a business has many customers, and a lot of them usually buy merchandise on credit. Control account is used to manage these debtors under one roof.

Account reaceiveable control account is an asset in nature, and shown in the current asset side of the balance sheet. Following items are Debited or credited in the sales ledger control account.
Debit side:
  • Balance b/f
  • Credit sales
  • Refund
  • Interest 
  • Dishounoured cheques
Credit side:
  • Cash/ Bank received
  • Sales return
  • Sales discount
  • Bad debts
  • Set-off