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Show store owner D. Mugami made approximately 300 credit sales and 100 credit purchases each month. Mr. Mugami recorded all of these sales and purchases
Show store owner D. Mugami made approximately 300 credit sales and 100 credit purchases each month. Mr. Mugami recorded all of these sales and purchases in a general journal. A friend asked him why he did not use a sales journal and a purchases journal. Mr. Mugami replied that he did not understand their use. He believed that they simply divided the work among several people. Since he did his own accounting, he had no need for these journals.
Is division of labour the only reason for using special journals? Explain.
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