What is an art of classifying, Business Management

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What is an art of classifying?

Art of classifying:

Classifying is a procedure of grouping transactions or entries of one nature within one place. This is completed by opening accounts into a book termed as ‘Ledger’. To acquire the correct idea of net effect of transactions previously recorded into a journal or subsidiary books that they are additional processed and grouped. The same transactions relating to an exact account for a specified period are brought together. After that they are recorded at one place termed as ledger, which classifies each transaction under various heads, persons, expenses, etc.


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