Lecture By:

Miss Saleha Javed Kayani

 The Role Of Accounting Record
 It is important that a business maintains accounting
records since they provide a record of transactions that a
business has carried out. This means that managers can
monitor the activities of the business and measure its
performance over time.

 Accounting records are key sources of information and

evidence used to prepare, verify and/or audit the financial
statements. They also include documentation to prove asset
ownership for creation of liabilities and proof of monetary
and non monetary transactions.
 The Ledger
 A general ledger account is an account or record used to sort
and store balance sheet and income statement transactions.
Examples of general ledger accounts include the
asset accounts such as Cash, Accounts Receivable, Inventory,
Investments, Land, and Equipment.

 The form of record used to record increases and decreases in

single balance sheet item is called Ledger account.
 WHY USE A JOURNAL
 The journal shows all information about a transaction
in one place and also provides an explanation of the
transaction.

 The journal provides a chronological record of all

events in the life of a business.

 The use of a journal helps to prevent errors.