Question

Difference between self balancing system and sectional balancing system​

Answer 1

Self Balancing System :-

• Control accounts are prepared in all the ledgers. In the general ledger, debtor's ledger adjustment and creditor's ledger adjustment are prepared.

• A trial balance can independently be prepared from each one of the ledgers.

• All the ledgers form the part of double entry system.

Sectional balancing system :-

• Control accounts are prepared in the general ledger only.

• A trial balance can be prepared only from the general ledger.

• Double entry system is completed in the general ledger only. Debtor's ledger and creditor's ledger serve only as memorandum books of account.