A common example of a general ledger account that can become a control account is Accounts Receivable. The summary amounts are found in the Accounts Receivable control account and the details for each customer’s credit activity will be contained in the Accounts Receivable subsidiary ledger.

How often should you post to an accounts receivable ledger?

Posting to the general ledger can be done as often as you like, but you must post all the entries for the month before you finalize your results for each month, assuming you report monthly.

What does accounts receivable control account in general ledger mean?

The accounts receivable control account or sales ledger control account, is an account maintained in the general ledger used to record summary transactions relating to accounts receivable. The balance on the accounts receivable control account at any time reflects the amount outstanding and due to the business by customers for credit sales.

When to post accounts receivable to general ledger?

Before beginning the reconciliation make sure all transactions are recorded for the period and that all the subsidiary ledger balances have been posted to the general ledger. The detailed listing of unpaid resident balances will be in the AR Aging report. This report should be run as of the last day of the reporting period.

Where does sales journal go in accounts receivable control account?

The sales journal is totalled for the accounting period, and used to make a double entry posting to the general ledger. The sales are posted to the credit side of the sales revenue account, and to the debit side of the accounts receivable control account.

How does accounts receivable subsidiary ledger work in double entry?

Subsidiary Ledger The sales invoices are also used to enter details of the sales to each customer in the accounts receivable subsidiary ledger. The subsidiary ledger is a listing of personal accounts, one for each customer. The accounts receivable subsidiary ledger does not form part of the double entry bookkeeping process. 4. General Ledger