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This tutorial explains how to establish full sets of accounts for a company in computerized accounting software. The process begins with creating a general ledger, which contains accounts codes for sales, expenses, and balance sheet items. Five sub-ledgers must be created and linked to the general ledger: the sales ledger for recording sales, the debtor's ledger for customer sales invoices and payments, the purchase ledger for recording company purchases, and two additional ledgers. Each ledger has specific functions in keeping track of financial transactions for the company.
