Debtor control account is a ledger that simply tracks any amounts owed to your company. The balance of that account at any time shows how much your customers collectively owe you.
Every time you raise an invoice the gross amount of that invoice is added to this ledger. When your customer pays the invoice it is then subsequently reduced.
You also have a creditor control account that does much the same thing but for suppliers, i.e. tracking what you owe to all your suppliers.
When you prepare a balance sheet these control accounts will reflect as an asset/liability.
Take a look at our infographic on the link below under “Working Examples”, this will show you the exact debits and credits that occur on this ledger.
