Best for MIMB MBA Finance Assignment Solution and others
Answer
A business organisations maintains three types books of Accounts; namely,
Cash Book:
To record cash receipts and payments including receipts and Payments through Bank. A separate cash book is kept to record petty expenses.
Journal:
To record non cash transactions like credit sales, credit purchases, Sales Returns, Purchase Returns. These Books are called Subsidiary books.
Ledger:
Ledger contains a classified summary of all transactions recorded in cash book and journal. All personal, Real and Nominal Accounts are prepared into the ledger.
Few additional books of account may be maintained as per requirement of business organization e.g. Stock Register, Members Register etc.
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