Can someone will help me in understanding the Control Accounts in FA-1..
Total of day books are posted to receivable ledger and payable ledger, the memorandum accounts.
Then the balances of individual ledger in the memorandum account are transferred to an account known as control account. Payable ledger control account, in respect of suppliers and, receivable ledger control account, in respect of customers.
Control simply means total. Organizations typically use these accounts for recording transactions with credit suppliers, credit customers, wages and salaries, tax purpose.