General accounting includes
bookkeeping methods used for recording of financial transactions of a
business or a company. Companies use the double entry book keeping
system for recording all financial transactions.
It includes maintaining and keeping a record of various accounting day
- Purchase book
- Sales book
- Cash book
- General ledger
- Supplier's ledger
- Customer ledger
A book keeper writes up and maintains various "Daybooks"
. He is responsible for making sure that correct transactions are
recorded in the correct daybook. A trial balance is finally made with
the help of these accounting books and ledgers.
Why is it required?
General accounting or book keeping is an important part of any
business. It helps to compile all the accounting data and information on
a daily basis. This information is later used to make various financial
statements. It is the beginning of the financial data gathering.