Question

The special type of accounting procedure followed by district wholesale cooperative store is

• A. double compartment system
• B. single account system
• C. double account system
• D. None of these

Answer 1

Answer:

A. double compartment system

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.