Give four reasons for maintaining books of original entry

      

Give four reasons for maintaining books of original entry

  

Answers


Davis
(i)To reduce details to be recorded in the ledger accounts /to reduce the bulkiness of the ledger
(ii)Act as back up data from which other information may be extracted if need arise /for future reference
(iii)contain information in details /description of transactions (such as units, trade discounts and terms of
sale)
(iv) the journal is used to trace / locate errors made when recording transactions
(v) to ensure that double entry is adhered to
(vi) to minimize /discourage fraud /enhance accountability
(vii) acts as diary /record transactions as they occur
(viii) used to prepare control /total accounts
Githiari answered the question on September 23, 2017 at 10:15


Next: Discuss five circumstances under which a partnership may be dissolved
Previous: Discuss five causes of unfavourable balance of payment for most developing countries

View More Business Studies Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions