Accountancy, asked by HritikLM836, 1 year ago

Advantages and Disadvantages of Source Documents.

Answers

Answered by amankumaraman11
26
Source document is the evidence of a particular transaction which is to be entered in the books of accounts.


Advantages of Source Document :

It helps in audit of the Transactions as it acts as Evidence .

It hels to minimize the input of wrong information in the books of accounts .

Accountability of Source document helps to reduce frauds in an organization .

Disadvantages of Source documents :

Source document for each and every transactions is not possible , in such case of transactions their may be possibility of errors  or fraud in recording transactions .

For large organisations , too much of transactions result in too much of source documents , in that case it is very difficult to maintain hard copy of source documents .




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Answered by Kester
10
Advantages of Source Document : It helps in audit of the Transactions as it acts as Evidence . It hels to minimize the input of wrong information in the books of accounts . Accountability of Source document helps to reduce frauds in an organization 
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