Why is "Placing contra entries on the wrong side of the control accounts." a common mistake in Control Accounts?

Why it happens: Students know a contra involves both accounts but are unsure which side each goes on. How to avoid it: A contra reduces what a customer owes US (Cr in SLCA) and reduces what WE owe a supplier (Dr in PLCA). Think: contra = mutual cancellation. In the SLCA it appears on the Cr side; in the PLCA it appears on the Dr side. Source: Cambridge 0452 Examiner Reports 2022-2024

Why is "Omitting dishonoured cheques from the SLCA or placing them on the wrong side." a common mistake in Control Accounts?

Why it happens: Students are unsure where dishonoured cheques go in the control account. How to avoid it: A dishonoured cheque REINSTATES a debt — the customer's obligation returns. This is a Dr entry in the SLCA (increases receivables). It appears on the Dr side. Source: Cambridge 0452 Examiner Reports 2022-2024

Why is "Placing discount allowed in the PLCA or discount received in the SLCA." a common mistake in Control Accounts?

Why it happens: Students mix up which discount relates to which ledger. How to avoid it: Discount allowed is given TO customers → reduces their debt → Cr in SLCA. Discount received is received FROM suppliers → reduces our debt → Dr in PLCA. Source: Cambridge 0452 Examiner Reports 2022-2024

Why is "Entering individual transaction amounts into the control account instead of day book totals." a common mistake in Control Accounts?

Why it happens: Students confuse the control account (totals) with the subsidiary ledger (individual entries). How to avoid it: Control accounts use TOTALS from day books (e.g. total credit sales from the sales day book for the period). Individual transactions go in the subsidiary ledger. The control account is a summary. Source: Cambridge 0452 Examiner Reports 2022-2024

Verification of Accounting RecordsCambridge IGCSE Accounting 0452

Control Accounts

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Control Accounts — Cambridge IGCSE Accounting 0452

Control accounts are summary ledger accounts that record the totals of all transactions for trade receivables (sales ledger control) and trade payables (purchases ledger control). Their balances must agree with the sum of the individual subsidiary ledger accounts, providing a vital check on accuracy and enabling quick extraction of total debtors and creditors for financial statements.

What you’ll learn

Mapped to the Cambridge IGCSE 0452 syllabus (2026-2028).

Prepare a sales ledger control account and a purchases ledger control account from given data.
Explain the purpose of control accounts and how they verify the accuracy of subsidiary ledgers.
Identify and process contra entries in control accounts.
Reconcile a control account balance with a list of individual account balances.
Identify the source of each figure entered into the control accounts.

Purpose and Structure of Control Accounts

Summary accounts that check the subsidiary ledger totals.

A control account (also called a total account) is maintained in the general ledger. Instead of recording individual transactions, it records the TOTALS of all transactions affecting a particular group of accounts (all debtors or all creditors).

Three purposes:

Verification — the closing balance of the control account should equal the sum of all balances in the corresponding subsidiary ledger. If they agree, this is evidence that the subsidiary ledger is arithmetically correct.
Speed — financial statements need a single total for trade receivables and trade payables. The control account provides this instantly without adding up hundreds of individual accounts.
Error detection — any discrepancy between the control account balance and the subsidiary ledger total reveals that an error has occurred in one of them.

Subsidiary ledgers:

The sales ledger (debtors ledger) contains individual accounts for each customer.
The purchases ledger (creditors ledger) contains individual accounts for each supplier.

Sources of data for control accounts: All entries are TOTALS taken from the books of original entry:

Entry	Source
Credit sales	Sales day book total
Credit purchases	Purchases day book total
Returns	Returns day books
Receipts/payments	Cash book totals
Discounts	Cash book discount columns
Irrecoverable debts	Journal

Control accounts record TOTALS, not individual transactions.
Balance = sum of all individual balances in the subsidiary ledger.
Data comes from day book totals and cash book totals.
Maintained in the general ledger alongside other nominal accounts.

Sales Ledger Control Account (SLCA)

All trade receivables summarised in one account.

The SLCA (also called Total Debtors Account or Debtors Control Account) records the total amount owed BY customers at any point in time.

Standard format:

Sales Ledger Control Account
Dr	$$	Cr
Balance b/d (opening debtors)	X	Receipts from customers
Credit sales (from SDB)	X	Discount allowed
Dishonoured cheques	X	Sales returns (from SRDB)
Interest charged on overdue accounts	X	Irrecoverable debts written off
		Contra entries (set-off)
		Balance c/d (closing debtors)

Key entries explained:

Opening balance (Dr): Total owed by customers at the start of the period.
Credit sales (Dr): Total from sales day book — increases how much customers owe.
Receipts (Cr): Cash/cheques received from customers — reduces what they owe.
Discount allowed (Cr): Reduction given to customers who pay early — reduces receivables.
Sales returns (Cr): Goods returned by customers — reduces receivables.
Irrecoverable debts (Cr): Debts written off as uncollectable — removes the balance.
Dishonoured cheques (Dr): A customer's cheque bounced — the debt is reinstated.
Contra entry (Cr): If a customer is also a supplier, the mutual debts are set off (see below).

The SLCA closing balance equals the total of all individual debtor balances in the sales ledger.

Dr side: things that INCREASE what customers owe (sales, dishonoured cheques).
Cr side: things that DECREASE what customers owe (receipts, discounts, returns, bad debts, contra).
Closing balance = total trade receivables for the statement of financial position.

See the full worked example for control accounts →

Purchases Ledger Control Account (PLCA)

All trade payables summarised in one account.

The PLCA (also called Total Creditors Account or Creditors Control Account) records the total amount owed TO suppliers.

Standard format:

Purchases Ledger Control Account
Dr	$$	Cr
Payments to suppliers	X	Balance b/d (opening creditors)
Discount received	X	Credit purchases (from PDB)
Purchases returns (from PRDB)	X	Contra entries (set-off)
Contra entries (set-off)	X
Balance c/d (closing creditors)	X

Key entries explained:

Opening balance (Cr): Total owed to suppliers at the start.
Credit purchases (Cr): Increases the amount owed to suppliers.
Payments (Dr): Cash/cheques paid to suppliers — reduces what we owe.
Discount received (Dr): Reduction granted by supplier — reduces our liability.
Purchases returns (Dr): Goods returned to suppliers — reduces what we owe.
Contra entry (Dr in PLCA / Cr in SLCA): set-off of mutual debts.

Closing balance: Credit balance = total trade payables for the statement of financial position.

Cr side: things that INCREASE what we owe (purchases, opening balance).
Dr side: things that DECREASE what we owe (payments, discounts, returns, contra).
Closing Cr balance = total trade payables for the SFP.

Contra Entries (Set-Off)

When a debtor is also a creditor — offset the balances.

A contra entry (also called a set-off) occurs when a business is BOTH a customer of and a supplier to the same entity. Rather than paying each other, the two debts are cancelled against each other.

Example:

Patel owes us $800 (debit balance in our sales ledger).
Patel is also our supplier and we owe Patel $500 (credit balance in our purchases ledger).
The set-off reduces both: Patel owes us a net $300; we owe Patel $0.

Journal entry for contra:

Dr Purchases Ledger Control Account $500 (reduces what we owe Patel)
Cr Sales Ledger Control Account $500 (reduces what Patel owes us)

The contra entry appears on the Cr side of the SLCA and the Dr side of the PLCA — both in the same amount.

In the individual subsidiary ledgers: the set-off is recorded in both Patel's personal accounts as well.

Contra: customer is also a supplier → set off the mutual debts.
Dr PLCA, Cr SLCA — same amount.
Reduces BOTH receivables and payables by the set-off amount.

Reconciling the Control Account

Control account balance must equal the sum of individual balances.

After preparing the control account, you should verify it by comparing the closing balance with the total of all individual account balances in the subsidiary ledger.

Reconciliation process:

List all individual debtor (or creditor) balances from the subsidiary ledger.
Add them up → subsidiary ledger total.
Compare with the closing balance of the control account.

If they disagree, the causes may be:

An item posted to the wrong individual account but correctly to the control account (error in subsidiary ledger only).
An item posted to the correct individual account but incorrectly (or not at all) to the control account.
A transposition error in either place.

Format of reconciliation:

Reconciliation of Sales Ledger Control Account	$
Balance per SLCA	18 500
Less: Error — credit note not posted to SLCA	(200)
Adjusted SLCA balance	18 300
Sum of individual debtor balances	18 300
Agreement ✓

Sum all individual subsidiary ledger balances.
Compare with control account closing balance.
Any difference indicates an error in the control account or individual accounts.
Identify and correct the discrepancy.

How it’s examined

Control accounts are examined in Paper 2 as a structured question worth 12-20 marks. Tasks include: prepare the SLCA and/or PLCA from given data (8-12 marks), identify the source document for each figure (2 marks), and state the purpose of control accounts (2-4 marks). Cambridge examiners note that students frequently place contra entries on the wrong side and forget dishonoured cheques. Show the T-account clearly with all entries labelled.

Sources: Cambridge IGCSE Accounting 0452 Syllabus 2026-2028; 0452 Examiner Reports 2022-2024. Last reviewed 2026-05-13.

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Step-by-step worked examples — Control Accounts

Step-by-step solutions to past-paper-style questions on control accounts, written exactly the way a tutor would explain them at the board.

1Prepare a Sales Ledger Control Account (10 marks)

Extended• Adapted from 0452 past paper• control accounts, SLCA, trade receivables, contra

Question

The following information relates to the sales ledger of Hassan Trading for the month of April 2025:

Opening balance of trade receivables: $18 400 Credit sales (from sales day book): $32 600 Receipts from credit customers (from cash book): $28 900 Discount allowed (from cash book): $450 Sales returns (from returns inwards day book): $1 200 Irrecoverable debts written off: $750 Dishonoured cheques: $380 Contra entries with purchases ledger: $600

Prepare the sales ledger control account for April 2025.

Step-by-step solution

Step 1
Identify Dr and Cr entries.

Dr side (increases what customers owe):
- Opening balance (b/d): $18 400
- Credit sales: $32 600
- Dishonoured cheques: $380
Cr side (decreases what customers owe):
- Receipts from customers: $28 900
- Discount allowed: $450
- Sales returns: $1 200
- Irrecoverable debts: $750
- Contra entries: $600
- Closing balance (c/d): ?
Step 2
Calculate the closing balance.

Dr total (before closing balance): $18 400 + $32 600 + $380 = $51 380 Cr total (without closing balance): $28 900 + $450 + $1 200 + $750 + $600 = $31 900 Closing balance (Dr, i.e. balance c/d on Cr side) = $51 380 − $31 900 = $19 480

Step 3

Present the T-account:

Sales Ledger Control Account	Dr $	Cr $
Balance b/d	18 400	Receipts from customers
Credit sales	32 600	Discount allowed
Dishonoured cheques	380	Sales returns
		Irrecoverable debts
		Contra entries
		Balance c/d
Total	51 380	Total
Balance b/d	19 480

Answer

Closing balance of trade receivables (sales ledger control account) = $19 480 Dr.

Examiner tip

Cambridge examiners note that dishonoured cheques are frequently omitted (they go on the Dr side — reinstating the debt) and contra entries are placed on the wrong side (they go on the Cr side of the SLCA). The closing balance is the figure for trade receivables on the statement of financial position.

2Prepare a Purchases Ledger Control Account (8 marks)
Extended• Adapted from 0452 past paper• control accounts, PLCA, trade payables, contra
Question
From the following data, prepare the purchases ledger control account for April 2025.

Opening balance of trade payables: $14 200 Credit purchases (from purchases day book): $27 500 Payments to suppliers (from cash book): $24 600 Discount received (from cash book): $380 Purchases returns (from returns outwards day book): $900 Contra entries with sales ledger: $600
Step-by-step solution
1. Step 1
  Identify Dr and Cr entries.
  
  Cr side (increases what we owe suppliers):
  
  Opening balance (b/d): $14 200
  
  Credit purchases: $27 500
  
  Dr side (decreases what we owe suppliers):
  
  Payments to suppliers: $24 600
  
  Discount received: $380
  
  Purchases returns: $900
  
  Contra entries: $600
  
  Closing balance (c/d): ?
2. Step 2
  Calculate closing balance.
  
  Cr total (before closing balance): $14 200 + $27 500 = $41 700 Dr total (without closing balance): $24 600 + $380 + $900 + $600 = $26 480 Closing balance (Cr, i.e. balance c/d on Dr side) = $41 700 − $26 480 = $15 220
3. Step 3
  Present the T-account:
  
  Purchases Ledger Control Account Dr $ Cr $
  Payments to suppliers 24 600 Balance b/d
  Discount received 380 Credit purchases
  Purchases returns 900
  Contra entries 600
  Balance c/d 15 220
  Total 41 700 Total
  Balance b/d
Answer
Closing balance of trade payables (purchases ledger control account) = $15 220 Cr.
Examiner tip
In PLCA questions, Cambridge examiners frequently see contra entries placed on the wrong side. In the PLCA, contras go on the Dr side (reducing what we owe suppliers). Discount received also goes on the Dr side (reduces our liability). The closing Cr balance = total trade payables on the SFP.

Purchases Ledger Control Account	Dr $	Cr $
Payments to suppliers	24 600	Balance b/d
Discount received	380	Credit purchases
Purchases returns	900
Contra entries	600
Balance c/d	15 220
Total	41 700	Total
		Balance b/d

Key Definitions and Keywords — Control Accounts

Definitions to memorise and the exact keywords mark schemes credit for control accounts answers — sharpened from recent examiner reports for the 2026 0452 sitting.

Control Account
Examiner keyword
A summary account in the general ledger that records the totals of all transactions affecting a group of accounts in a subsidiary ledger. Its closing balance must equal the sum of all individual account balances in that subsidiary ledger.
Sales Ledger Control Account (SLCA)
Examiner keyword
A control account summarising all transactions with trade receivables. Its debit closing balance represents the total amount owed by customers and is shown as trade receivables in the statement of financial position.
Purchases Ledger Control Account (PLCA)
Examiner keyword
A control account summarising all transactions with trade payables. Its credit closing balance represents the total amount owed to suppliers and is shown as trade payables in the statement of financial position.
Contra Entry (Set-Off)
Examiner keyword
A journal entry that offsets a trade receivable balance against a trade payable balance when the same entity is both a customer and a supplier. Recorded as Dr PLCA, Cr SLCA.
Subsidiary Ledger
A detailed ledger containing individual accounts for each customer (sales ledger) or each supplier (purchases ledger). The control account in the general ledger summarises the total of all accounts in the subsidiary ledger.

Common Mistakes and Misconceptions — Control Accounts

The traps other students keep falling into on control accounts questions — taken from recent Cambridge IGCSE 0452 examiner reports and mark schemes — and how to avoid them.

✕Placing contra entries on the wrong side of the control accounts.
Cambridge 0452 Examiner Reports 2022-2024
Why it happens
Students know a contra involves both accounts but are unsure which side each goes on.
How to avoid it
A contra reduces what a customer owes US (Cr in SLCA) and reduces what WE owe a supplier (Dr in PLCA). Think: contra = mutual cancellation. In the SLCA it appears on the Cr side; in the PLCA it appears on the Dr side.
✕Omitting dishonoured cheques from the SLCA or placing them on the wrong side.
Cambridge 0452 Examiner Reports 2022-2024
Why it happens
Students are unsure where dishonoured cheques go in the control account.
How to avoid it
A dishonoured cheque REINSTATES a debt — the customer's obligation returns. This is a Dr entry in the SLCA (increases receivables). It appears on the Dr side.
✕Placing discount allowed in the PLCA or discount received in the SLCA.
Cambridge 0452 Examiner Reports 2022-2024
Why it happens
Students mix up which discount relates to which ledger.
How to avoid it
Discount allowed is given TO customers → reduces their debt → Cr in SLCA. Discount received is received FROM suppliers → reduces our debt → Dr in PLCA.
✕Entering individual transaction amounts into the control account instead of day book totals.
Cambridge 0452 Examiner Reports 2022-2024
Why it happens
Students confuse the control account (totals) with the subsidiary ledger (individual entries).
How to avoid it
Control accounts use TOTALS from day books (e.g. total credit sales from the sales day book for the period). Individual transactions go in the subsidiary ledger. The control account is a summary.

Practice questions

Exam-style questions with step-by-step worked solutions. Try one before checking the method.

Past paper style quiz

Get a report showing which sub-topics you've nailed and which ones still need work.

Control Accounts — Cambridge IGCSE Accounting 0452

Entry

Source

Credit sales

Sales day book total

Credit purchases

Purchases day book total

Returns

Returns day books

Receipts/payments

Cash book totals

Discounts

Cash book discount columns

Irrecoverable debts

Journal

Sales Ledger Control Account

Balance b/d (opening debtors)

Receipts from customers

Credit sales (from SDB)

Discount allowed

Dishonoured cheques

Sales returns (from SRDB)

Interest charged on overdue accounts

Irrecoverable debts written off

Contra entries (set-off)

Balance c/d (closing debtors)

Purchases Ledger Control Account

Payments to suppliers

Balance b/d (opening creditors)

Discount received

Credit purchases (from PDB)

Purchases returns (from PRDB)

Contra entries (set-off)

Balance c/d (closing creditors)

Example:

Patel owes us $800 (debit balance in our sales ledger).
Patel is also our supplier and we owe Patel $500 (credit balance in our purchases ledger).
The set-off reduces both: Patel owes us a net $300; we owe Patel $0.

Journal entry for contra:

Dr Purchases Ledger Control Account $500 (reduces what we owe Patel)
Cr Sales Ledger Control Account $500 (reduces what Patel owes us)

The contra entry appears on the Cr side of the SLCA and the Dr side of the PLCA — both in the same amount.

In the individual subsidiary ledgers: the set-off is recorded in both Patel's personal accounts as well.

Reconciliation of Sales Ledger Control Account

Balance per SLCA

18 500

Less: Error — credit note not posted to SLCA

(200)

Adjusted SLCA balance

18 300

Sum of individual debtor balances

18 300

Agreement ✓

Sales Ledger Control Account

Dr $

Cr $

Balance b/d

18 400

Receipts from customers

Credit sales

32 600

Discount allowed

Dishonoured cheques

380

Sales returns

Irrecoverable debts

Contra entries

Balance c/d

Total

51 380

Total

Balance b/d

19 480

Purchases Ledger Control Account	Dr $	Cr $
Payments to suppliers	24 600	Balance b/d
Discount received	380	Credit purchases
Purchases returns	900
Contra entries	600
Balance c/d	15 220
Total	41 700	Total
		Balance b/d

Purchases Ledger Control Account

Dr $

Cr $

Payments to suppliers

24 600

Balance b/d

Discount received

380

Credit purchases

Purchases returns

900

Contra entries

600

Balance c/d

15 220

Total

41 700

Total

Balance b/d

Control Accounts

Short Study Notes in the form of Slides

Short Study Notes — Control Accounts

Detailed Notes

What you’ll learn

How it’s examined

1Prepare a Sales Ledger Control Account (10 marks)

2Prepare a Purchases Ledger Control Account (8 marks)

Control Account

Sales Ledger Control Account (SLCA)

Purchases Ledger Control Account (PLCA)

Contra Entry (Set-Off)

Subsidiary Ledger

✕Placing contra entries on the wrong side of the control accounts.

✕Omitting dishonoured cheques from the SLCA or placing them on the wrong side.

✕Placing discount allowed in the PLCA or discount received in the SLCA.

✕Entering individual transaction amounts into the control account instead of day book totals.

Practice questions

Past paper style quiz

Control Accounts

Short Study Notes in the form of Slides

Short Study Notes — Control Accounts

Detailed Notes

What you’ll learn

How it’s examined

1Prepare a Sales Ledger Control Account (10 marks)

2Prepare a Purchases Ledger Control Account (8 marks)

Control Account

Sales Ledger Control Account (SLCA)

Purchases Ledger Control Account (PLCA)

Contra Entry (Set-Off)

Subsidiary Ledger

✕Placing contra entries on the wrong side of the control accounts.

✕Omitting dishonoured cheques from the SLCA or placing them on the wrong side.

✕Placing discount allowed in the PLCA or discount received in the SLCA.

✕Entering individual transaction amounts into the control account instead of day book totals.

Practice questions

Past paper style quiz