Account 2
Definition
A named segment of a ledger recording transactions relevant to the person or the matter named. Accounts consist of two sides; increases are recorded on one side and decreases on the other. These entries are often referred to as debit and credit entries.
Accounts may be kept in paper form or held in a computer.
Example
Example 1:
An Abuja trading company maintains a separate account in their ledger for each supplier, recording every purchase and payment made, keeping debits and credits clearly separated.
Example 2:
A Chicago retailer’s accountant maintains individual accounts for each product category in their ledger, recording all increases and decreases in inventory value through debit and credit entries.