integrated ledger systeman integrated account


Integrated Ledger System

An integrated account ledger system, which has a number of features that may be viewed as preferable to the interlocking ledger system. In present decade there has in fact been a move towards greater integration of accounting information needs in a single unified system an integrated ledger system, that an integrated ledger system liars the given advantages as:

i. There is merely one set of accounting records that is kept along with enough analysis to enable the preparation of cost and financial accounting statements and to provide the control mechanisms undertaken via management and financial accountants.

ii. There is only one loss and profit account. This removes the possibility of senior management frustration and confusion from the production of two seemingly different profit figures.

iii. There are no uses to reconcile financial and cost accounting records.

iv.There is a removal of the duplication of effort and cost that arises while separate ledger is maintained.

v. The integrated ledger system fits in along with the use of computer based information database and a systems approach to information availability and employ.

Entries in the Integrated Ledger System

The integrated ledger system encloses most of the entries in the interlocking ledger system. The financial ledger control account is no longer in need. The range of liability and asset accounts essential for financial control reasons and for the preparation of financial accounting statements will incorporate the entries that would have appeared in the financial ledger control account.

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Cost Accounting: integrated ledger systeman integrated account
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