In the practice set you will have the opportunity to maintain a set of accounting records for a typical local town government encompassing the rst two months of its scal year. At the end of the second month we will make the adjusting and closing entries as If ltware the end of the scal year. We will also prepare the appropriate nancial statements. The town maintains its accounting records on the modied accrual basis of accounting. This means that all material items of revenues earned or expenditures incurred are-accrued in order to prepare the nancial statements. The accounting system used by the town is prescribed by the State Comptroller and consists of the following records: General Journal Cash Disbursements Joumel Cash Receipts Joumal General Ledger Subsidiary Expenditure Ledger 3:- Subsidiary Retrenue Ledger . VVVVV Also included in the practice set is a chart of accounts and a schedule of exhibits to assist in recording the appropriate transactions. Balances from the previous year have been brought forward in the General Ledger