<P> In accounting, the controlling account (also known as an adjustment or control account) is an account in the general ledger for which a corresponding subsidiary ledger has been created . The subsidiary ledger allows for tracking transactions within the controlling account in more detail . Individual transactions are posted both to the controlling account and the corresponding subsidiary ledger, and the totals for both are compared when preparing a trial balance to ensure accuracy . </P> <P> For example, "accounts receivable" is the controlling account for the accounts receivable subsidiary ledger . In this subsidiary ledger, each credit customer has his own account with its own balance . Thus, while the "accounts receivable balance" can report how much the company is owed, the accounts receivable subsidiary ledger can report how much is owed from each credit customer . </P> <P> Other examples of controlling accounts and their subsidiary ledgers include "accounts payable" (accounts payable subsidiary ledger) and "equipment" (equipment subsidiary ledger). </P> <P> In common use, control accounts refer to those that would, under ideal circumstances, balance to zero . For example, an inventory control account will hold the balance amount between a stock account updated by stock transactions on the balance sheet and the value of stock on hand multiplied by its unit cost . Ideally these would be the same value but rarely are . Reasons for discrepancies include stock losses and gains yet to be "journaled" and the control account measures the differences and provides financial visibility and control of the value of those . If the discrepancy is significant, then actions such as stock counts can be triggered in order to validate stock and correct the balance sheet and clear the control account . Other examples would be the "goods received not invoiced" account . </P>

The inventory account is a controlling account for the inventory subsidiary