FAC1601 FINANCIAL
ACCOUNTING SEM I
questions and answers part
1
Let’s go through the previous year’s financial accounting question papers.
1. Define the purpose of maintaining subsidiary books.
The main purpose of maintaining subsidiary books is to create a differentiation between cash and credit
transactions that occurs in an organization. All the credit transactions are further recorded in the various
subsidiary books
2. What are the advantages of keeping a ledger?
Maintaining Classified Accounts Indirect Advantages
Determining Results of Each Account
Presenting Statistical Information
Collecting Information
Application of Double Entry System
ACCOUNTING SEM I
questions and answers part
1
Let’s go through the previous year’s financial accounting question papers.
1. Define the purpose of maintaining subsidiary books.
The main purpose of maintaining subsidiary books is to create a differentiation between cash and credit
transactions that occurs in an organization. All the credit transactions are further recorded in the various
subsidiary books
2. What are the advantages of keeping a ledger?
Maintaining Classified Accounts Indirect Advantages
Determining Results of Each Account
Presenting Statistical Information
Collecting Information
Application of Double Entry System
