1. The Books Of Original Entry comprises General Journals, Special Journals, Cash Books, and Retail Cash Books.
2. Business transactions are divided into cash transactions and credit transactions.
3. Every transaction occurring must be recorded in the Books Of Original Entry before posting to the ledger at the end of the month.
4. The ledger can be divided into:
|(a) Sales Ledger/Debtors||All Debtors Trade Account|
|(b) Purchase Ledger/Creditors||All Creditors Trade Account|
|(c) General Ledger||i. Asset Account & Liability|
ii. Revenue & Expenses Account
iii. Takeout Account
iv. Capital Account
v. Return Account
vi. Asset Debtors Account
vii. Asset Creditors Account