The statement is about the Double Compartment System (also called Double Account System).
Definition:
It is a special type of accounting procedure followed by district or wholesale cooperative stores.
Under this system, the accounts are kept in two parts (compartments):
Stock Accounts (or Commodity Accounts): Records opening stock, purchases, and closing stock of goods.
General Accounts (or Cash/Capital Accounts): Records cash transactions, capital, and other financial dealings.
Purpose:
To separately track the goods and financial transactions, making management easier for large cooperative stores.
Helps in checking loss, theft, or mismanagement of goods.
