creditors’ ledger control account

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The nominal (or general) ledger control account recording the totals of the entries made to the individual creditors’ ledgers from the purchases journal and the cash payments journal. The total on the creditors’ ledger control account is periodically compared to the sum total of individual creditors’ ledger accounts as part of the internal control system. The creditors’ ledger control account should always equal the total of the individual creditors’ ledger amounts; any differences that do occur must be investigated.

Subjects: Accounting.

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