Question

Identify the basic concepts of an accounting information system and describe the nature and purpose of a subsidiary ledger.

Answer 1

Answer)

Basic concepts of an accounting information system:

1)It can be either manual or computerised

2)Collects and processes data into information

3)Helps in facilitating necessary accounting information for interested people for decision making.

Nature and Subsidairy accounts:

Subsidairy ledger is an type of accounts to record the transactions of specific accounts.Its fundamental purpose is to support General ledgers.Here,the intention of creating a Subsidairy ledger is to simplify the complexity of transaction and disclosures the account balance of a particular account appearing in general ledger for better understanding.