05-17-2004, 11:30 PM
Hi
Conceptually their are only three types of recording of financial information. Initial recording or daily recording on journal, then ledgers and finally management accounting ledgers or as we call it subsidary ledgers. Even cash book, daily sales book etctera all are part of jornal.However in practice the concept has evolved to simplify daily recording and later posting these to ledger and subsidary ledgers. This bypassess journal recording to save duplication. Now instead of keeping journals and to keep audit track, we record entries either in cash / sales book/ purchase book (also sometimes called day book being composed of all three) daily and all special / miscelleneous transactions (not falling in day book) in journal. Example of day book ( a type of journal) includes bank vouchers, purchase vouchers etctera.
Aamer Sikandar
Conceptually their are only three types of recording of financial information. Initial recording or daily recording on journal, then ledgers and finally management accounting ledgers or as we call it subsidary ledgers. Even cash book, daily sales book etctera all are part of jornal.However in practice the concept has evolved to simplify daily recording and later posting these to ledger and subsidary ledgers. This bypassess journal recording to save duplication. Now instead of keeping journals and to keep audit track, we record entries either in cash / sales book/ purchase book (also sometimes called day book being composed of all three) daily and all special / miscelleneous transactions (not falling in day book) in journal. Example of day book ( a type of journal) includes bank vouchers, purchase vouchers etctera.
Aamer Sikandar
