Question

Advantage and disadvantage of general ledger

Answer 1

Answer:

Advantages:

Localizes the errors and facilitates in quick detection with minimum efforts;

Facilitates division of work amongst different accounting staffs in the Accounts department;

Responsibility for committing errors can be fixed;

Possibility of collusion is lessen as the ledgers are maintained by different accounts staff;

Facilitates the preparation of interim accounts and draft final accounts

Disadvantages of having self-balancing ledgers:

more costly to maintained ( hiring separate staff to maintain these ledgers)

More clerical work as the need to maintain additional columns in subsidiary books.