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In FA Kit, there’s a question from Chapter Control account.
Which one of the following is NOT a purpose of a receivables ledger control account?
A. A receivables ledger control account provides a check on the overall accuracy of the personal ledger accounts.
B. A receivables ledger control account ensures the trial balance balances.
C. A receivables ledger control account aims to ensure there are no errors in the personal ledger.
D. Control accounts help deter fraud.Why is the answer B?
The control account is just one account in the nominal/general ledger. There can be mistakes in it and there can be mistakes in all of the other ledger accounts, and any mistakes can stop the trial balance balancing.
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