Question

Hwo does sectional balancing system help in international check system

Answer 1

Explanation:

Sectional Balancing system :-

In the sectional balancing system, only a section of the group of ledgers is self-balanced. Under the system, the only general ledger is made to balance.

This is done by inserting two additional accounts in the general ledger.

1. Total Debtors account / Debtors control account or Sales Ledger Adjustment Account.
2. Total Creditors account or Creditors control account or Purchase Ledger Adjustment Account.