Explain five key functions of control accounts prepared by entrepreneur.
Explain five key functions of control accounts prepared by entrepreneur.
ANSWER IS!
- It helps in confirming the arithmetic correctness of transactions posted in the debtor and creditor individual ledger accounts
- It acts as a summary of the total account balances to be posted in the trial balance at the end of the financial period
- It is a tool for detecting and preventing errors and frauds in the respective debtor and creditor accounts
- It facilitates delegation of duties to clerks responsible of maintaining debtor and creditor accounts
- It quickens the process of preparing the final accounts of the business. the control accounts provide the balances to be used in the preparation of statement of financial position for it avails only a single figure which is an aggregate of derived from the subsidiary ledgers
About the Author - Dr Geoffrey Mbuva(PhD-Finance) is a lecturer of Finance and Accountancy at Kenyatta University, Kenya. He is an enthusiast of teaching and making accounting & research tutorials for his readers.
