I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART E: PREPARING A TRIAL BALANCE 

 

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237 

C H A P T E R 

 

 

TOPIC LIST 

SYLLABUS 

REFERENCE 

1  What are control accounts? 

E3(b)

2 Discounts 

D1(e), D8(k)

3  The operation of control accounts 

D8(j), E3(c)

4  The purpose of control accounts 

E3(a), (d)–(f)

 

 

 

Control accounts

So far in this Interactive Text we have assumed that the 

bookkeeping and double entry (and subsequent preparation of 

financial accounts) has been carried out by a business without any 

mistakes. This is not likely to be the case in real life: even the 

bookkeeper of a very small business with hardly any accounting 

entries to make will be prone to human error. If a debit is written 

as $123 and the corresponding credit as $321, then the books of 

the business are immediately out of balance by $198. 

Once an error has been detected, it has to be corrected.  

In this chapter and in the following two chapters we explain how 

errors can be detected, what kinds of error might exist, and how to 

post corrections and adjustments to produce final accounts. 

 

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