preetham
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Hi, Can you give a description on interlocking accounting system?
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veeru
answered
In interlocking accounting system, two set of accounts are prepared.
In interlocking accounting system, all big organisation, take benefits of cost accounts separately from financial accounts. So, it can more control on cost.
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Shubhangi Jain
answered
**Interlocking accounting system** is a system in which company records his transactions on the basis of financial accounting principles and cost accounting principles separately. It means, there will be two records of accounts. One is financial accounts record and second is cost accounts record.
**Features of Interlocking Accounting System**
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- In interlocking accounting system, two set of accounts are prepared.
- In interlocking accounting system, all big organisation, take benefits of cost accounts separately from financial accounts. So, it can more control on cost.
- In interlocking accounting ledger, cost accounts are maintained in cost ledger and financial accounts are maintain in financial ledger.
