Q: Explain two advantages of dividing the ledger into three sections (General Ledger, Purchases Ledger & Sales Ledger). Advantages of dividing the ledger: • Division of labour – a number of people can work on the ledger at the same time, • Segregation of duties, • Ease of reference – similar accounts are placed together and can be referred to more easily, • Balances from sections of the ledger e.g sales ledger, can be more easily obtained, • Fraud prevented/additional control, and • Specialization.
Posted on: Wed, 04 Sep 2013 05:20:00 +0000