SOFP & SOPL Flashcards
CHAPTER 2
1
Q
When to use manual journals ?
A
Transactions that are not entered automatically, the transactions are posted to the ledgers using manual journals
Can be
a) Routine –> bank payments & receipts (ledgers not linked with bank account)
b) Non-routine –> depreciation
2
Q
Why sole traders are required to maintain financial record ?
A
Mainly to pay taxes.
