Account Receivable Control account | Concept & Format

Accounts Receivable Control account, or Sales ledger control account is an accounting head. It is used as a collective account of all the debtors ( Person who owes the money), where all the transactions of account receivables are recorded collectively. The Basic rules are as same as any other receiveable account. The control account shows the accumulated money owed to the business in a single account. In the real world, a business has many customers, and a lot of them usually buy merchandise on credit. A control account is used to accumulate the total balance that is receiveable to a business.

Accounts receivable control account is an asset in nature and is shown in the current asset side of the balance sheet. The 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

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