Q.Explain the terms:

These four terms are the vocabulary of every accounting package; understanding them is essential before recording any transaction.

These four terms describe how accounting software is organised:

1. Master — a permanent reference record that is created once and used again and again, such as a ledger account, a stock/inventory item, or a tax rate. Masters save re-typing the same details on every transaction.
2. Ledger (ledger account) — an account maintained for one item the business deals with — for example Cash, Bank, Sales, Purchases, a particular customer, or a supplier — in which all related transactions are recorded.
3. Group (account group) — a classification head under which ledgers are placed according to their nature — assets, liabilities, income, or expenses. Because each ledger knows its group, the software automatically puts its balance in the correct financial statement. …

Do not confuse a ledger (an account) with a group (a class of accounts), or a master (reference data) with a voucher (a trans …