Explain advantages and disadvantages of ledger
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Advantages of having self-balancing ledgers:
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:
Adds more challenges to small concerns re: more costly to maintained ( hiring separate staff to maintain these ledgers)
More clerical work as the need to maintain additional columns in subsidiary books
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:
Adds more challenges to small concerns re: more costly to maintained ( hiring separate staff to maintain these ledgers)
More clerical work as the need to maintain additional columns in subsidiary books
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