Accounts Receivable Control Account Explained | AR Ledger | Error types | Bookkeeping for beginners

Master Accounts Receivable (AR, Sales Ledger) Ledger and the Accounts Receivable Control Account in this complete lecture designed for beginners, bookkeeping students and anyone learning accounting.

In this lesson, we break down how the Sales Ledger (Accounts Receivable Ledger) and the AR Control Account work together, how they are updated, and how to identify and correct the most common errors during reconciliation.


📘 WHAT YOU WILL LEARN IN THIS VIDEO

✔ What is the Accounts Receivable Ledger (Sales Ledger)
✔ What is the Accounts Receivable Control Account
✔ How source documents → day books → subledgers → general ledger posting works
✔ Double-entry postings for invoices, receipts, VAT and bank
✔ Why the AR Ledger total must match the Control Account balance
✔ How to reconcile customers’ individual accounts to the control account
✔ How errors affect balances:
• Omitted invoice
• Duplicated invoice
• Understated invoice
• Overstated invoice
• Omitted credit note
• Duplicated credit note
• Understated credit note
• Overstated credit note
✔ Payment errors in the AR Ledger vs AR Control Account
✔ How to prepare and balance a full Accounts Receivable Control Account (T-account)
✔ How to spot when the AR Ledger is too high or too low
✔ How to correct reconciliation differences

This video includes fully illustrated examples, flows, diagrams and tables that make even the most difficult control account questions easy to understand.


🧾 TOPICS COVERED IN THIS VIDEO
Accounts Receivable Ledger (Sales Ledger)
Subledgers vs General Ledger
Books of Prime Entry
Sales Day Book
Cash Book
AR Control Account structure (Dr/Cr)
Reconciliation and error correction
Suspense-free error detection
Bounced cheques
Credit sales vs receipts
Impact of VAT on postings


🎯 WHY THIS LESSON IS IMPORTANT

Control accounts are a core part of double-entry bookkeeping, financial accuracy and exam success. Accountants use AR control accounts every month to ensure customer balances are correct.
By the end of this lesson, you will confidently understand how entries flow, how to reconcile ledgers, and how to spot and correct errors fast.

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