Describe
the advantages of sub-dividing the Journal.
Describe the advantages of sub-dividing the Journal.
The advantages of sub division of Journal are given below.
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Division of work: The lack of sub-division of Journal may lead to chaos and confusions, if large numbers of transactions are to be recorded through Journal entry by more than one accountant. There will be more inflexibility and lack of accountability among the accountants. Sub-division of Journal into Subsidiary Books facilitates division of work. Sub-division enables different accountants to work on different books. This will not only avoid confusions but also enhance the sense of accountability among the accountants.
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Time saving: The art of recording through subsidiary book is time efficient and more effective as compared to recording through Journal entries.
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Prompt information: The transactions of similar nature are recorded in a particular Subsidiary Book. This acts as a ready source to access information quicker than through Journal entry.
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Creates Accountability: Sub-division of Journal entrusts accountants with higher degree of responsibility and accountability for maintaining subsidiary book that are assigned to them.
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Easy checking: In case discrepancies or errors arise, they can be easily located and rectified, as lesser number of transactions is recorded in a Subsidiary Book than in a Journal.
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Specialisation: The accountability, responsibility and division of work together enhance the specialisation of each accountant. This is because, routine and repetitive tasks are performed by each accountant.
The advantages of sub division of Journal are given below.
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Division of work: The lack of sub-division of Journal may lead to chaos and confusions, if large numbers of transactions are to be recorded through Journal entry by more than one accountant. There will be more inflexibility and lack of accountability among the accountants. Sub-division of Journal into Subsidiary Books facilitates division of work. Sub-division enables different accountants to work on different books. This will not only avoid confusions but also enhance the sense of accountability among the accountants.
-
Time saving: The art of recording through subsidiary book is time efficient and more effective as compared to recording through Journal entries.
-
Prompt information: The transactions of similar nature are recorded in a particular Subsidiary Book. This acts as a ready source to access information quicker than through Journal entry.
-
Creates Accountability: Sub-division of Journal entrusts accountants with higher degree of responsibility and accountability for maintaining subsidiary book that are assigned to them.
-
Easy checking: In case discrepancies or errors arise, they can be easily located and rectified, as lesser number of transactions is recorded in a Subsidiary Book than in a Journal.
-
Specialisation: The accountability, responsibility and division of work together enhance the specialisation of each accountant. This is because, routine and repetitive tasks are performed by each accountant.
