Acca financial Accounting (FA) Study Text ac ca (FA)

Double entry bookkeeping 

50

 

KAPLAN PUBLISHING

 

As stated above, each class of transaction, asset, liability and item of equity will 

have its own ledger account. The summary of these ledger balances will 

eventually be transferred into the corresponding caption in the primary financial 

statements. For a summary of the main classifications please refer to the later 

chapter on preparing basic financial statements, where example illustrations 

have been reproduced. 

Books of prime entry are covered in more detail in a later chapter. In this 

chapter we will focus on the entries made in the ledger accounts. In particular 

we will look at the nature of 'double entry' bookkeeping.