Question

Small pencil is better than large memory comment on it and briefly explain the process in accountancy

Answer 1

A small pencil is better than large memory refers to the recording of a number of thoughts. This is an utmost necessity in accounting, as the prime aim of accounting it to record all entries.

• The proverb means keeping something in the record. In accountancy, it is essential to maintain a record of all the financial statements of an enterprise.
• Keeping the records such as journals, balance sheets, income statements etc, will be more stable and efficient than the best memory, however weak the medium might be.
• In the phrase, the point is not just about precision,  but also sharing it with others for analysis. It is much better than sharing a memory.
• Further, it also helps to maintain an accurate record of the financial or inventory, which using only memory is nearly impossible.