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Simple English definitions for legal terms
account book
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A quick definition of account book:
Account book: A special book where a business writes down all the things it buys and sells. It helps the business keep track of its money and make sure everything is correct. Another name for it is shop books.
A more thorough explanation:
An account book is a journal used to record a business's transactions. It is also known as shop books or books of account. These records are maintained by shopkeepers, traders, or other businesspeople in the usual course of business.
- A small business owner uses an account book to keep track of sales, expenses, and profits.
- A shopkeeper maintains shop books to record daily sales and purchases.
- A trader uses books of account to track inventory and sales.
These examples illustrate how an account book is used to keep track of a business's financial transactions. By recording all transactions in one place, it is easier to monitor cash flow, identify trends, and prepare financial statements.