what are the advantages of subsidiary books of accounts
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The following are the advantages of subsidiary book :-
1) It enables the division of work among accounting personnel by assigning with separate books and it increases efficiency of personnel as they perform same activities daily.
2)It helps to save time and labor by recording similar type of transactions in a separate book.
3)It becomes easy to access the detailed information relating to a particular transaction as the transactions relating to one head are recorded in a separate book.
4) It helps to install internal check system as the subsidiary book maintained by a clerk is automatically checked by another clerk.
5) It helps to maintain accounts and thus avoids the necessity of journal entries.
1) It enables the division of work among accounting personnel by assigning with separate books and it increases efficiency of personnel as they perform same activities daily.
2)It helps to save time and labor by recording similar type of transactions in a separate book.
3)It becomes easy to access the detailed information relating to a particular transaction as the transactions relating to one head are recorded in a separate book.
4) It helps to install internal check system as the subsidiary book maintained by a clerk is automatically checked by another clerk.
5) It helps to maintain accounts and thus avoids the necessity of journal entries.
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Saving Labour Hours: Recording is a subsidiary book saves a lot of time and clerical hours. Firstly there is no need to journalize and/or give narrations for every transaction. This helps reduce the time it takes to completely record a transaction. Also since we use a number of subsidiary books, various accounting process can be undertaken simultaneously. This to will save the time of the clerks/accountants.
Division of Work: In place of one general journal, we have several subsidiary books, So the resulting work may be divided among several members of the staff. This will save time, improve efficiency and result in fewer errors as well.
Specialization of Work: If one person maintains the same subsidiary book over many years he acquires full knowledge and understanding of the work. We can say he becomes a specialist in one type of transaction (say purchases for example). He becomes very efficient in handling such transactions and hardly any error gets made.
Easy for Reference: When transactions of all types are in the same subsidiary book it becomes easy to search for them. Whenever any information is needed we directly refer the subsidiary book to get said information.
Easier for Checking: If the Trial Balance does not match, it will be much easier to locate the error thanks to the existence of separate books i.e. a subsidiary book. Same goes if you want to detect a fraud.
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Division of Work: In place of one general journal, we have several subsidiary books, So the resulting work may be divided among several members of the staff. This will save time, improve efficiency and result in fewer errors as well.
Specialization of Work: If one person maintains the same subsidiary book over many years he acquires full knowledge and understanding of the work. We can say he becomes a specialist in one type of transaction (say purchases for example). He becomes very efficient in handling such transactions and hardly any error gets made.
Easy for Reference: When transactions of all types are in the same subsidiary book it becomes easy to search for them. Whenever any information is needed we directly refer the subsidiary book to get said information.
Easier for Checking: If the Trial Balance does not match, it will be much easier to locate the error thanks to the existence of separate books i.e. a subsidiary book. Same goes if you want to detect a fraud.
HOPE THIS HELPS YOU....
PLEASE MARK IT AS BRAINLIEST...
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