Accounter ledger head

llllVICTORllll (Internal Auditor) (511 Points)

04 October 2012  

Hi

 

My Question for today is,

 

IS there any rule for creation of ledger head. I mean on what basis should a ledger head such as repairs and maintanance account, Salary account etc be created. how specific should the expense be?

 

Could a company maintain accounts such as Factory expense account, contracting expense account etc, which are very vague and doesnot explain the specific nature of account?