The active power-virtual frequency (P-ω′) and reactive power-virtual voltage (Q-V′) droop control scheme has been suggested for coordinated control of distributed energy resources (DERs) in islanded microgrids. While this method mitigates the issue of active and reactive power coupling in the droop controller, its main limitation is power-sharing error. Due to the local property of the virtual frequency and voltage, significant steady-state errors occur for both active and reactive power sharing. In this paper, a decentralized method is proposed to eliminate the mentioned errors without utilization of communication links. In the proposed scheme, P-ω′ and Q-V′ droops are realized at the microgrid point of common coupling (PCC). By employing the PCC virtual frequency/voltage for the active/reactive power sharing of all DERs, the sharing errors caused by the local property are eliminated. Small signal stability of the proposed scheme is studied, and Hardware-in-the-Loop (HIL) experimental results are presented to validate the proposed method and highlight the improvements compared with the conventional P-ω′/Q-V′ scheme. The results verify the efficacy of the proposed method for providing accurate active and reactive power sharing while regulating the frequency and voltage close to the rated values.