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Q. Objective of Recording business transactions?
- Use the account as the essential classifying and storage unit for accounting information.
- Articulate the effects of business transactions in terms of debits and credits to different types of accounts.
- List the points in the accounting cycle.
- Record the results of business transactions in a journal.
- Post journal entries to an account in the ledger.
- Organize a trial balance to test the equality of debits and credits in the journalizing and posting process.
- Use and Analyze the financial results-horizontal and vertical analyses.
Why to and by using in journal, trading a/c, p&l a/c and ledger?
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