Question

In order to prevent a transaction from being recorded more than once, a company should maintain only one book of original entry. True or False?

Answer 1

Ans:

True; To prevent duplicate entries only one book on origional entry to be maintained. Becuase in case of multiple original entry books chances of recording duplicate entries are increased.

We can understand this with an example:

Let we have 2 original entry books, and both are maintained by different accountants. We received an purchase invoice from Party x. Now accountant 1 has recorded the purchase in books of accounts. Now accountant 2 has seen the invoice, he checked in his purchase book that this invoice is not yet recorded. he again entered the invoice in his purchase book. So this will lead to Duplicacy.

Correct answer is True.

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