Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Vendor name change

308 views

Save Share

Join Us Follow Us Add as Source

mohan krishna

CA Final

31 Points Posted on 02 June 2023

Hi,

please suggest if a vendor company changed its name, should we create new ledger with new name or should we use old account by changing name.

thanks in advance

Replies (2)

Quick Summary

When a vendor changes their company name, a key accounting question arises: should you create a new ledger or simply update the existing account? While updating the old account might seem simpler, best practice often suggests creating a new ledger. This ensures clarity and proper record-keeping, especially within systems like SAP where new ledgers require specific authorisation.