Sales and purchase are the main activities in the business. By interviewing 22 owners which are the dominant
owners there, they stated that operation activities such as selling and purchasing have been handled by custom,
without accounting system. They do not have any accounting system for handling their transactions. It is
showed by there is no element and procedure to form an accounting system. Most of them have not kept and
given a transaction document, and also not record a transaction in a form (journal or ledger) (Table 2).