Subledgers and control accounts
Objective: Explain control accounts and reconcile a subledger to the general ledger.
Recommended first: The general ledger
Accounts Receivable in the general ledger is a control account: one total for all customers. The customer subledger lists each customer's invoices and payments. The sum of subledger balances must equal the control account.
- If they disagree, look for an invoice posted to the ledger but not the subledger (or vice versa).
- A customer with a credit balance has overpaid or has an unapplied credit note.
Subledgers matter most for receivables and payables because businesses need to know who owes what. When the control account and the subledger disagree, look for postings made directly to the control account without a customer or supplier, invoices recorded in the subledger but not posted, and payments applied to the wrong party.
Check your work
- Does the subledger total equal the control account?
- Are there credit balances that need investigation?
- Was every posting made with a customer or supplier reference?
Customers A ($400), B ($1,100), and C ($0) total $1,500, matching Accounts Receivable of $1,500.
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable (control) | $1,500.00 |
Common mistakes
✗ Fixing a subledger difference with a plug entry.
✓ Find the specific missing or misapplied document.
Guided practice
Use hints freely here.
Item 1 of 1
Accounts Receivable from postings
Starting from zero, a business sends invoices of $500.00, $1,650.00, $450.00 and collects $650.00 and $200.00. What is the Accounts Receivable balance, and how much service revenue was recognized?
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Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
Refund a customer's overpayment
On Mar 17, 2026, BrightNest Cleaning Co. refunds $100.00 to a customer who paid an invoice twice. The duplicate receipt had credited Accounts Receivable, leaving a credit balance on the customer's account.
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Key terms
- Subledger
- A detailed ledger supporting a control account.
- Control account
- A general-ledger account summarizing a subledger.
References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.