ABSTRACT
This chapter describes the use of the decimal accounting system in the accounting process. In practice, similar ledger accounts are grouped together and numbered in a logical order. This has two main advantages: in cash book and journal entries, only the number of the ledger account needs to be mentioned without the name of the account and the number helps to identify the type of ledger account. In classifying the ledger accounts, the decimal accounting system are used. This implies classifying the ledger accounts in 10 categories, numbered 0 to 9. The chapter presents a table that gives an overview of ledger accounts and their category. It also includes exercises that help students try themselves and use the decimal accounting system for a set of financial scenarios.
