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Which of the following is not the purpose of a control account?

Accounts - Principles of Accounts
WAEC 2012

Which of the following is not the purpose of a control account?

  • A. check on errors of addition
  • B. locate errors
  • C. locate missing figures
  • D. monitor the cash book
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Correct Answer: Option D
Explanation

In accounting, the controlling account (also known as an adjustment or control account) is an account in the general ledger for which a corresponding subsidiary ledger has been created. 

The details for each control account will be found in a related (but separate) subsidiary ledger. The control account keeps the general ledger free of details, but still has the correct balance for preparing the company's financial statements.


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Post UTME Past Questions Agent
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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