10 difference between self balancing and sectional balancing
Answers
(i) Control accounts are prepared in all the ledgers. In the general ledger, debtor’s ledger adjustment account and creditor’s ledger adjustment account are prepared.
(ii) A trial balance can independently be prepared from each one of the ledgers.
(iii) All the ledgers form part of double entry system.
Sectional :
(i) Control accounts are prepared in general ledger only. The names of these control accounts are total debtors accounts and total creditors account. Personal ledgers namely debtors ledger and creditors ledger have no control account.
(ii) A trial balance can be prepared only from the general ledger.
(iii) Double entry system is completed in the general ledger only. Debtor’s ledger and creditor’s ledger serve only as memorandum books of account.
Answer:
DIFFERENCE BETWEEN SELF BALANCING AND SECTIONAL BALANCING.
1 In sectional balancing system, total debtors account and total characters account are opened in the general ledger book whereas in srlf balancing system for adjustment accounts are opened in the general ledger, sales ledger and purchase ledger.
2. Sectional balancing system, total debtors accounts and total debtors account are memorandum account and not the partvof double entry system but under surveillance system adjustment accounts are the part of double entry system.
3. Under sectional balancing system, the arithmetical accuracy of the sales ledger and purchase ledger can be checked by preparing total number of debtors to account total creditors accounts while in self balancing system arithmetical accuracy of each ledger can be checked separately by preparing trialbalance of each ledger.
4. Under sectional balancing system only one trial balance is prepared in general ledger whereas self balancing system three separate trial balance is prepared in each ledger.