Describe the advantages of sub-dividing the journal.
Describe the advantages of sub-dividing the journal.
Sub dividing of journal has following advantages:
1. Accountability: As each accounts are handled by individual accountants, it makes them more accountable and ensure that accounts are properly maintained.
2. Accuracy: Each accountant will be specialized in the work assigned to them and hence less chances of errors.
3. Division of Labour: As accounts are maintained by separate accountants it ensures faster recording and parallel recording of transactions.
4. Economical: As division of labour brings in specialization, the process becomes efficient and there by becomes economical.
5. Ease of Audit and analysis: The analysis of transactions which are similar in nature becomes easier.
6. Productivity: As the accountants gain expertise in handling specific account, in increases their productivity.
Sub dividing of journal has following advantages:
1. Accountability: As each accounts are handled by individual accountants, it makes them more accountable and ensure that accounts are properly maintained.
2. Accuracy: Each accountant will be specialized in the work assigned to them and hence less chances of errors.
3. Division of Labour: As accounts are maintained by separate accountants it ensures faster recording and parallel recording of transactions.
4. Economical: As division of labour brings in specialization, the process becomes efficient and there by becomes economical.
5. Ease of Audit and analysis: The analysis of transactions which are similar in nature becomes easier.
6. Productivity: As the accountants gain expertise in handling specific account, in increases their productivity.
