THE LEDGER This is the principal book in which accounts are kept. These accounts are usually referred to as ledger accounts. They are so called because each occupies a specific page a number of pages or a section of a page in the ledger. Note: A balance Sheet, on the other hand is not a […]
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Methods of stocks valuation are devices which aim to deal with some of the problems. W shall consider some of those commonly adopted. (I)Â Â Â Â Â FIRST-IN-FIRST OUT (FIFO) METHOD This method assumes as the name indicates that items of stock were sold during the year in the order in which they were originally bought. Goods that
This is similar to the two column cash book except that the discount column is added to both the debit side and the credit side. The debit side, it will be recalled, records receipts while the credit side records payments. The purpose of the discount column in the debit side is, therefore, to record discounts
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There are two main classes of ledger accounts. These are Personal Accounts Impersonal Account. Impersonal Accounts are sub-divided into two, namely real account and nominal account. (1)    Personal Accounts: These are accounts in which transactions with persons and other businesses and organizations are recorded. Debtors and creditors’ accounts are typical examples. If the balances are
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