Sunday, 15 January 2012


Why else do you think we have more than one ledger?
The important reason is to aid analysis by keeping similar items together

Why bother with books of first entry ? Why don’t we just enter transactions straight into the ledger?
Books of original entry contain all the important information relating to a transaction.  Ledgers just contain a summary.  In fact, some of the entries in the ledgers are often just one line entries covering an entire month of transaction.

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