 Hello, in this lecture we will define controlling account. According to fundamental accounting principles, while 22nd edition, the definition of controlling account is general ledger account, the bounce of which, after posting, equals the sum of the bounces in its related subsidiary ledger account. When we think of a controlling account, we usually think of it in relation to a subsidiary account, a subsidiary account that's going to be added by characteristic and have certain characteristics, those characteristics and that account being something that we want to check against the controlling account. It should match basically the controlling account. We can think of this in terms of accounts receivable and accounts payable, where we have basically a controlling account just recording accounting the transactions in a general ledger type format. And we might have a subsidiary ledger account where we are tracking that same information by customer or by vendor. The total in the subsidiary ledger should match out to the controlling account when we're just counting up all of the transactions. For example, if we looked at the accounts receivable, on the trial balance, we'd have 27,000 in this case, meaning that's what customers owe us. And we usually back that up with a general ledger, general ledger being added up by the order of transactions. When did they happen in time, giving us that 27,000. However, we also want to see that in terms of the subsidiary ledger. So the subsidiary ledger is going to be broken out in this case by customer. So we're going to say, here's the customers, there's the 27,000 that is owed that 27,000 should match up to the controlling account, meaning if we're going to if we're going to put this in order by who owes us money, the total should still sum up to in this case, the general ledger, which is being added up in terms of just date, I mean, when the transactions actually happen. And that's going to be the matching process that we want to happen when we have some kind of special account that we're adding up in order to have special characteristics such as a subsidiary ledger for accounts receivable. Similar situation with accounts payable that represents who we owe money to the vendors we owe money to, we could have a general ledger kind of like the controlling account here that is broken out by the date when the transactions happen. So we're going to add this information up when the transactions happen. But we also want to see this information in a different format. We want to see who we owe the money to. That's where the subsidiary ledger comes into play. The subsidiary ledger will be listed out by vendor. Once we add up all the vendors in order to check that it is correct, that total that 106 40 should match the controlling account, in this case the general ledger, the general ledger being ordered just by date of transaction, the subsidiary ledger being ordered by another format, a format that helps us run the business, know who we owe by vendor in the case of accounts payable.