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Explain the purposes for which control accounts are prepared in a business organisation

      

Explain the purposes for which control accounts are prepared in a business organisation.

  

Answers


Mutiso
i. To be able to ascertain both creditors and debtors balance which are to be accounted
for in the balance sheet.
ii. To detect errors and frauds committed in the preparation of debtors and creditors
accounts in the ledger
iii. To obtain the credit purchases and sales in cases of single entries i.e. incomplete records
iv. To provide an internal check where clerical work of recording is done by different
persons
Mutiso answered the question on November 26, 2018 at 16:44


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