Slip system of posting advantages and disadvantages
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Disadvantages of slip system:
The system is also not free from snags. It suffers from the risk of loss, misappropriation as well as destruction of slips since they are loose.
Advantages of slip system:
it reduces the possibility of errors and frauds.it provides a good system of internal check etc. it saves a lot of time since it is prepared by the customers themselves;
The slip system of posting refers to the slips used to make entries in the customers’ personal accounts in the ledger rather than from journals. This method is usually opted for when there are no vouchers.
Advantages:
* Accounting is smooth and there is evidence for each transaction made.
* There is no need for subsidiary books.
* It saves a lot of labor and time.
Disadvantages:
* There is a risk of the slips getting destroyed or lost.
* Slips may get manipulated or misappropriated.
* Verifying the slips can become a cumbersome task.