The correct option is C. To ensure that individual account balances match the total in the general ledger. Detailed Explanation What are Control Accounts? Control accounts are summary accounts in the general ledger that consolidate the balances of individual accounts from subsidiary ledgers. In a self-balancing ledger system, control accounts are used for both accounts receivable and accounts payable. This means that the total of all individual customer accounts (accounts receivable) or supplier accounts (accounts payable) is reflected in a single control account in the general ledger. Primary Purpose of Control Accounts: The primary purpose of maintaining control accounts is to ensure that the total of individual account balances in the subsidiary ledger matches the total in the control account in the general ledger. This serves as a check on the accuracy of the subsidiary ledgers and helps to identify any discrepancies or errors that may have occurred during the recording of transactions. Why Option C is Correct:

1. Matching Balances: Control accounts provide a mechanism to verify that the sum of individual accounts (like customer accounts) equals the balance shown in the control account. This matching process is crucial for maintaining the integrity of financial records.
2. Error Detection: If there is a discrepancy between the control account and the subsidiary ledger, it indicates that there may be an error in recording transactions, which can then be investigated and corrected.
3. Simplified Reporting: By summarizing individual accounts, control accounts simplify the reporting process, making it easier to prepare financial statements and monitor financial performance.

Why the Other Options are Incorrect or Weaker: A. To provide a detailed record of all transactions - Explanation: This option is incorrect because control accounts do not provide a detailed record of all transactions. Instead, they summarize the totals of transactions recorded in the subsidiary ledgers. The detailed records are maintained in the individual accounts within the subsidiary ledgers, not in the control accounts. B. To facilitate the preparation of financial statements - Explanation: While control accounts do play a role in the preparation of financial statements by providing summarized data, this is not their primary purpose. The main function is to ensure that the balances match, which indirectly supports financial statement preparation. Therefore, this option is weaker than option C. D. To eliminate the need for a trial balance - Explanation: This option is incorrect because control accounts do not eliminate the need for a trial balance. A trial balance is still necessary to ensure that the total debits equal total credits in the general ledger. Control accounts serve a different purpose and do not replace the need for a trial balance. Common Pitfalls:

• Confusing Control Accounts with Subsidiary Ledgers: Students often confuse the purpose of control accounts with that of subsidiary ledgers. Remember, control accounts summarize the totals, while subsidiary ledgers provide detailed records.
• Overlooking Error Detection: Some may underestimate the importance of control accounts in error detection. Always check for discrepancies between control accounts and subsidiary ledgers.

Revision Summary:

• Control accounts summarize individual account balances from subsidiary ledgers.
• Their primary purpose is to ensure that individual account balances match the total in the general ledger.
• They help in error detection and simplify financial reporting.
• Control accounts do not provide detailed transaction records or eliminate the need for a trial balance.