Categories
ACCA F7 ACCA P2 book keeping MANAGEMENT ACCOUNTING

The accounting ledger – meaning.

The required treatment for the change in Accounting Policy.

A ledger is a set of accounts. It contains all the accounts of a specific business enterprise. It may be kept in any of the following two forms:

(i) bound ledger and

(ii) loose leaf ledger

A bound ledger is kept in the form of book which contains all the accounts. These days it is common to keep the ledger in the form of loose-leaf cards. This helps in posting transactions particularly when mechanized system of accounting is used. read more

Categories
MANAGEMENT ACCOUNTING

Accounting journal – meaning

Financial accounting revision question on basic accounting documents.

When a business transaction takes place, the first record of it is done in a book called journal. The journal records all the transactions of a business in the order in which they occur. The journal may, therefore, be defined as a chronological record of accounting transactions. It shows names of accounts that are to be debited or credited, the amounts of the debits and credits and any other additional but useful information about the transaction. A journal does not replace but precedes the ledger. read more

Categories
ACCA P2 ACCA F7 FINANCIAL ACCOUNTING

Accounting records – meaning

Accounting records - meaning

Accounting records are the records of initial accounting entries and supporting records, such as:

checks and records of electronic fund transfers;

invoices; 

contracts; 

the general and subsidiary ledgers, read more