What is meant by integral accounting state the advantages of integrated accounting
Answers
Answer:
Meaning of Integral System:
Integral or Integrated system is a system of accounting under which only one set of account books is maintained to record both the Cost and Financial transactions. The system implies the merger of both cost and financial accounts in one set of books.
Explanation:
The system of accounting has the following advantages:
(i) There is no need for reconciliation because there will be only one figure of profit or loss as there is only one set of books.
(ii) This system is economical because it avoids duplication of recording the transactions in two separate set of books.
(iii) Accounting information is readily available and the correctness of the data is automatically checked.
(iv) It enables the introduction of mechanised accounting.
(v) A better understanding exists among the staff.