Why is the ledger divided into a sales ledger, a purchases ledger and a general ledger?

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Question

Why is the ledger divided into a sales ledger, a purchases ledger and a general ledger?

Accepted Answer

So that different clerks can maintain each ledger and each subsidiary ledger can be checked against a control account — Award 1 mark. The practical benefit is that a disagreement localises the error — if the sales ledger control account will not agree, the fault is inside the sales ledger and nowhere else.

Answer

Because personal accounts cannot legally be kept alongside expense accounts

Answer

So that different clerks can maintain each ledger and each subsidiary ledger can be checked against a control account

Answer

Because the law requires three separate sets of books

Answer

So that the trial balance can be extracted three times a year

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